PTT of Thailand to invest P1.4B in RP

Thailand-based PTT Public Co. Ltd., which owns PTT Philippines, is planning to invest more than P1.4 billion or $25 million for a five-year expansion program in the Philippines, a ranking company official said over the weekend.

PTT executive vice president for corporate development Tarin Vongvanich  said the company’s board has recently approved the initial phase of the program which will involve the expansion of its retail and wholesale marketing arms in the Philippines next year.

Vongvanich said the expansion will be carried out by forging a joint venture with its local partner Subic group

PTT Philippines is one of the new oil players that entered the downstream oil market upon its deregulation in 1998. PTT Philippines is engaged in gas station retailing, bulk marketing, distributing and trading of petroleum products.

The company has also formed a joint venture with Coastal Petroleum Corp. of the US to create Subic Bay Fuels Co. Inc. (SBFCI) for the international operations of the Subic Bay oil storage terminal and another company Subic Bay Distribution Inc. for the domestic operations.

As part of the five-year plan, PTT hopes to initially put up 50 service stations throughout the country. At present, PTT maintains 14 stations nationwide.

Most of the new stations are reportedly expected to be constructed in major cities in Luzon.

The company official said they are planning to construct a depot in Cebu, supply aviation fuels to Ninoy Aquino International Airport, and build a gas retail station in the expressway.

He said they would also be introducing and providing new products particularly lube products.

The PTT official said the company will also be putting up a lubricant processing plant in the near future. But the location of the plant has yet to be identified.

But Vongvanich pointed out that the proposed investment would still hinge on the economic condition of the both countries.

"We would have to be cautious to monitor the economy and oil price situation in the Philippines and Thailand," he said.

In early 2004, PTT has already signified its interest to pour in huge investment for the expansion program as part of the bilateral cooperation in the energy sector signed by the two countries.

This initiative, Vongvanich said, only indicated the company’s continued confidence on the Philippines.