Thailand’s Thai Oil will allocate capital spending worth US$1bn between 2023 and 2025 to expand its business, including US$500m to expand its refinery capacity and move to higher added-value fuel products under its Clean Fuel Project (CFP) strategy. The company plans to increase its oil refinery capacity in Sriracha (Thailand) to 400 kb/d, up from 280 kb/d currently, and upgrade fuel oil to products with higher value, including diesel and jet fuel.
The project is expected to be completed in 2025, and the refinery will produce cleaner diesel to meet the Euro 5 environmental emission standard, which is scheduled to be enforced in Thailand from 1 January 2024. The project will also allow Thai Oil to convert gasoline into a raw material for making plastic pellets in the petrochemical industry.
The remaining capital will fund the second-phase development of an olefins cracker in Indonesia (US$270m), enhance machinery efficiency and add sales offices in Indonesia, Vietnam and India (US$120m) and fund new businesses (US$110m).
At the end of 2021, Thailand’s total refining capacity stood at 1,235 kb/d.
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