SET-listed liquefied petroleum gas (LPG) trader WP Energy Plc (WP) plans to spend 550 million baht in 2018 for the third phase of its new LPG terminal in Chachoengsao.
The company expects to start commercial operation by 2019.
Noppavong Omathikul, director for accounting and finance, said WP wants to increase its LPG capacity from 8,989 tonnes to 18,489 tonnes by the end of next year to serve future growth in LPG consumption for home cooking and the industrial sector.
The new terminal is projected to have capacity of 9,500 tonnes and is in the third phase of development.
The project is adjacent to WP's existing terminal in Chachoengsao's Bang Pakong district.
WP operates five wholly-owned LPG terminals, covering four provinces: Chachoengsao, Lampang, Samut Songkhram and Khon Kaen.
"We are lowering our operating costs for the five LPG terminals because the rental terminals cost roughly 100 million baht per year," he said.
"The new expansion is aimed at cutting rental costs in the near future."
The move to expand follows the Stock Exchange of Thailand (SET) shutting down the possibility of de-listing WP last month, as the company has complied with the bourse's regulations and improved its financial status.
The SET has removed the suspended trading and non-compliance signs, and WP shares were allowed to resume trading in the resource industry on Feb 1.
WP shares, formerly labelled Picnic Corporation Plc (PICNI), have been suspended since 2008 because the company failed to submit its financial statement for the period ending on Dec 31, 2007.
In 2013, WP was formed from the amalgamation of PICNI and World Gas Thailand Co.
Deputy chief executive Chomkamol Poompanmoung said World Gas spent roughly 1 billion baht to support WP's rehabilitation plan.
She said WP has a strategic plan from 2018 onward to export LPG to Thailand's neighbouring countries.
"We expect strong growth from Indochina countries to result in demand climbing higher than we see for domestic operations," said Ms Chomkamol. "WP is an importer in Myanmar, and we will next start selling in Laos, with the expectation of exporting 1,000 tonnes of LPG per month to the two countries from Thailand."
In Thailand, WP expects LPG sales to grow 3-5% from 870,000 tonnes in 2017, which was a drop of 7.3% from a year before. She said WP is still ranked second in the LPG market after PTT, with a 21% share.
WP operates under the trademark of World Gas with 141 LPG filling plants, two LPG service stations and 160 LPG transport vehicles.
WP shares closed yesterday on SET at 11.50 baht, up 1.55 baht, in trade worth with 808 million baht.
