Industry Trend Analysis - Upgrades To Improve Fuels Quality, Boost Competitiveness - JAN 2018

BMI View: Ongoing upgrades will increase Thailand ' s refining capacity from 1.25mnb/d to 1.39mn b/d by 2021, while significantly boosting its ability to produce higher-margin, lower-sulphur fuels, in line with shifting regional and global consumption trends. Competition in the Asian clean fuels market will intensify over the coming years, as refiners across the region undertake similar upgrades.

Thailand' refining capacity is set to increase from 1.25mn b/d in 2017 to 1.37mn b/d by 2021, as the country's biggest refiner Thai Oil embarks on a massive five-year, USD4.0bn upgrade and expansion program aimed to improve plant efficiency and boost production of low-sulphur fuels at its Sriracha refinery, Chonburi province. Planned works will expand Sriracha's crude processing capacity from 275,000b/d to 400,000b/d, and add new port capacity and logistics infrastructure to accommodate larger vessels.

Similarly, Bangchak Petroleum, operator of a 120,000b/d refinery in Bangkok, also announced plans to invest up to THB15.0bn (USD458.0mn) over the next five years, the lion's share of which will be used to add 20,000b/d of new crude processing capacity and improve higher-margin product yields, such as gasoline and jet fuel.

Capacity Expansion On The Horizon
Thailand - Refining Capacity, 000b/d & % chg y-o-y
f = BMI forecast. Source: JODI, BMI

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