Bangchak queries govt oil standards
Bangchak Petroleum Plc president Anusorn Sangnimnuan has expressed concern over refineries' ability to gain approval for loans necessary to fund research into improving oil quality.
Anusorn said the reason financial institutions were unwilling to grant the loans was that it was unclear whether once the quality of the oil has been improved, refineries would be able to sell it at a higher price and repay the loan."Without clear evidence the oil would fetch higher retail prices, the financial institutions cannot approve the loans," he said during a Krungthep Turakij seminar on energy policies. Anusorn said refineries in Thailand would need tens of billions of baht to finance investment and research, in order to meet the Energy Ministry's requirement that Thailand's oil meet the Euro 4 standard by 2011. He noted that the only way refineries could meet this requirement was if their investment in doing so would yield them a higher return. Anusorn reminded those present that refineries had a bad experience when they were previously ordered to reduce the sulphur level in diesel from 500ppm to 350ppm. After investing in technology to make the change, it was a long time before refineries could raise their retail prices and recoup costs. "We don't know why we have to rush to meet this standard," he said. "Who is pressuring us to do this? Car companies? Or is our environment in a poor condition?" Achara Deboonme The Nation
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