Shantou, China: SET-listed Siamgas and Petrochemicals Plc (SGP), Thailand's second-largest cooking gas trader, plans to expand its liquefied natural gas (LNG) business in Thailand and China.
Managing director Supachai Weerabowornpong said SGP wants to expand its LNG business in Thailand because demand growth opportunities abound, with only one other player in the market.
Apart from SGP, the National Energy Policy Council allows the Electricity Generating Authority of Thailand (Egat) to import 1.5 million tonnes a year.
SGP signed a memorandum of under- standing with Egat International Co, a subsidiary of Egat, to be a partner in bidding on LNG imports to serve local demand.
In China, the company has prepared land and investment budget for a new LNG plant in Shantou to serve demand growth. SGP aims to expand LNG capacity to 100,000 tonnes a year.
SGP has two planned merger and acquisition (M&A) deals this year with Chinese companies in Hainan and Shantou.
"We expect to conclude at least one deal this year," said Mr Supachai.
He said SGP is preparing an investment budget of 2 billion baht for 2018, excluding the M&A plan.
SGP plans to expand the liquefied petroleum gas (LPG) business in the north of China because of high demand growth there.
SGP has total LPG capacity of 300,000 tonnes. The Chinese government has put off further development of coal-fired power plants because of high levels of pollution, shifting to gas instead.
The company is one of three leading LPG players in southern China.
SGP plans to bring its subsidiary in China to list on the Hong Kong Stock Exchange this year.
The company expects LPG sales volume in 2018 to grow to 3.4 million tonnes from 3.2 million in 2017, thanks to the global LPG price hitting a high of US$580 (18,229 baht) per tonne.
Sales revenue in 2018 is projected to grow by 10% to 65.6 billion baht from 59.6 billion last year, which was an increase of 23.3%.
