Thaioil has announced its 2025 growth strategy, focusing on sustainability, market opportunities, and advancing its Clean Fuel Project (CFP). The company aims to navigate challenges in the energy and petrochemical sectors while strengthening its position in the global market.
Thaioil’s CEO, Bandhit Thamprajamchit, highlighted optimism in 2025, citing increased jet fuel demand driven by Asia’s booming tourism and higher diesel consumption due to economic growth. Holding 50% of Thailand’s jet fuel market, Thaioil is poised to benefit from these trends, despite potential pressure on gasoline margins from new refinery supplies.
Thaioil’s four main strategies for 2025 are:
Advancing the Clean Fuel Project (CFP):
Thaioil is fast-tracking the CFP, a cornerstone of its long-term plan to strengthen its refinery business and align with national energy goals. In February 2024, the Diesel Hydrodesulfurisation Unit (HDS-4) began a trial run, enabling the production of Euro 5 diesel. Other components, including the Crude Distillation Unit (CDU-4) and Residue Hydrocracking Unit (RHCU), are under construction, with progress monitored closely to overcome space and complexity challenges.
Expanding Value Chains:
The company is focusing on high-value products and penetrating key markets in Vietnam, Indonesia, and India. Thaioil is also growing its chemicals business, particularly in the cleaning and infection control sectors, and exploring partnerships in bio-surfactants, hydrogen, bio-jet fuel, and carbon capture technologies under its “TOP for The Great Future” initiative.
Enhancing Financial Strength:
Thaioil is committed to maintaining strong financial health by managing costs and mitigating risks in commodity prices and currency fluctuations.
Driving Sustainability:
Thaioil integrates ESG principles into its operations. The company is reducing greenhouse gas emissions and supporting community-focused projects in education, healthcare, and job creation.
Despite progress, Thaioil is addressing subcontractor payment issues involving Samsung E&A (Thailand), Petrofac, and Saipem. Subcontractors have halted construction due to overdue payments. Thaioil is pushing these companies to fulfill their contractual obligations while assessing the impact on CFP timelines and costs. Clarity on the matter is expected in early 2025.
Thaioil remains determined to complete the CFP, enhance Thailand’s energy security, and deliver sustainable growth for shareholders and the nation.
