SET-listed Bangkok Aviation Fuel Services Plc (BAFS) has finalised its extension plan for an oil pipeline from Phichit to Myanmar in a bid to transport liquid petroleum directly to countries along the Indian Ocean.
Two border provinces -- Tak and Chiang Rai -- were shortlisted as passageways for the pipeline. BAFS chose Tak, with Mawlamyine in Myanmar the terminus of the pipeline.
Mawlamyine city is 300 kilometres southeast of Yangon. It is located at the mouth of the Thanlwin River, a main trading centre and seaport in the country.
Prakobkiat Ninnad, managing director of BAFS, said the firm conducted a feasibility study for the oil pipeline extension.
The first phase connecting Ayutthaya to Phichit opened on March 27.
The second phase extends from Phichit to Lampang and is 82% complete, scheduled to start operation in early 2020.
Total investment is 9.7 billion baht with a pipeline length of 570km between Ayutthaya and Lampang.
The 367km extension will head west, from Phichit to Tak and into Myanmar, then moving south to the seaport in the Gulf of Martaban.
"The extension of the oil pipeline will be part of the connection to power transmission lines in Myanmar," Mr Prakobkiat said. "BAFS has yet to disclose a planned budget, but this study is now close to a conclusion."
He said the oil pipeline between Ayutthaya and Phichit has a transport capacity of 9 billion litres a year, but the utilisation rate is now at 33%.
After beginning operation in late March, the pipeline has transported 75 million litres and generated revenue of 14 million baht.
Moreover, BAFS plans to extent the pipeline from its oil depot in Lampang to Chiang Mai for the new cross-border pipeline to southern China.
Separately, Mr Prakobkiat said BAFS is ready to participate in the auction for storage and aircraft refuelling services at U-tapao airport.
The Royal Thai Navy, the bidding host, will schedule the auction period after development of airport capacity is close to completion.
"BAFS can win this bid because it is a service provider of storage and aircraft refuelling services at five airports: Suvarnabhumi, Don Mueang, Samui, Sukhothai and Trat," Mr Prakobkiat said. "We are confident that our experience, technical and financial capabilities can compete with rivals."
BAFS is Thailand's largest jet fuel service provider. It expects 2019 revenue to rise 4-5% to 3.75 billion baht. Fuel sales volume is expected to grow by 8-9% in 2019 from 6 billion litres in 2018.
Mr Prakobkiat said BAFS is running over capacity to serve increasing air traffic at Suvarnabhumi and Don Mueang airports.
