Thai Oil Plc, the largest oil refinery in Thailand by capacity, plans to invest an extra US$1.7 billion (63 billion baht) in the development of a new oil refinery in Si Racha, Chon Buri, as part of the Clean Fuel Project (CFP), which is nearing completion.
The funds will be allocated for equipment purchases and various expenses, including consultancy fees. This budget was recently approved by the Thai Oil board, which also consented to the $505 million interest payment incurred during the construction phase.
“We intend to seek final approval at our shareholders’ meeting on February 21 next year,” stated Bandhit Thamprajamchit, CEO and President of Thai Oil.
The CFP began in 2019 with an initial investment budget of $4.8 billion and is currently 90% complete. The project aims to enhance Thai Oil’s refinery capacity and support the sale of value-added products.
The company seeks to increase its refinery capacity from 280,000 barrels per day to 400,000 barrels per day, while also upgrading fuel oil to produce higher-value products such as diesel and jet fuel. Additionally, it intends to develop new, more environmentally friendly products.
Scheduled to commence operations in 2025, the CFP aligns with Thai Oil’s long-term strategy for sustainable growth, enabling the company to compete effectively amid the global shift towards clean energy, according to Mr. Bandhit.
“This project will also stimulate the economy by creating jobs across the supply chain, including construction work,” he added.
Thai Oil has previously urged the parent companies of construction firms involved in the CFP to resolve long-standing wage payment delays, which have led to protests at the refinery in Chon Buri.
