Energy conglomerate Bangchak Corporation has completed its acquisition of Chevron Hong Kong, a move the company believes will strengthen its foothold in North Asia despite mounting challenges in the oil retail sector.
The deal, valued at US$270 million (8.91 billion baht), was finalised on June 30 and gives Bangchak full ownership of Chevron Hong Kong's operations.
The business includes 31 Caltex-branded service stations, international-standard oil storage terminals and commercial, industrial and maritime fuel operations.
In 2024, Chevron Hong Kong reported revenue of HK$10.5 billion (44.7 billion baht) and net profit of HK$263.3 million (1.1 billion baht).
Bangchak acknowledges that the Hong Kong oil market is facing headwinds.
Demand for petroleum products has declined amid the rapid adoption of electric vehicles (EVs), while many drivers prefer refuelling in mainland China where prices are lower.
Competition in the territory also remains intense.
However, Bangchak president and chief executive Chaiwat Kovavisarach said the acquisition reflects the company's confidence in its ability to unlock value from complex assets.
He pointed to past successes, including the takeover of petroleum assets in Norway, where Bangchak extended production well beyond the expected decommissioning date, and the 2023 acquisition of Esso (Thailand), which saw refinery output boosted from 135–140 kilo barrels per day (KBD) to 170–180 KBD during the Middle East oil crisis.
"We can maximise the value of our invested assets and leverage returns on investment to their full potential," Mr Chaiwat said.
Under the agreement, the 31 service stations will continue to operate under the Caltex brand for up to five years before transitioning to Bangchak's identity.
Beyond oil trading, the company sees opportunities to expand into biofuels in Hong Kong and across North Asia.
Bangchak has long been a pioneer in renewable energy. Two decades ago, it introduced ethanol and biodiesel blends in Thailand.
More recently, its Sriracha refinery became the country's first producer of B24 marine biofuel, a blend of used cooking oil methyl ester and very low-sulphur fuel oil.
In 2025, Bangchak also began producing sustainable aviation fuel (SAF) at a rate of 1 million litres per day, using waste cooking oil and other bio-feedstock.
Mr Chaiwat noted that global energy infrastructure remains heavily reliant on liquid fuels, but the transition from fossil fuels to biofuels is accelerating.
