Chairman Supapong Krishnakan yesterday said the company was on track with its plan to increase the plant's capacity from 17,000 barrels per day to 28,000-34,000 barrels.

"We see a growing demand," he said, adding that the government's attempt to improve environmental standards among industrial plants in the petrochemical-concentrated area would not affect the investment plan, because the refinery was of small scale and equipped with standardised equipment.

The expansion will cost Bt300 million to Bt500 million.

As part of the company's expansion plans, Rayong Purifier has also conducted a feasibility study to put up a condensate plant with a capacity of 60,000-100,000 barrels per day.

The project, which will cost Bt3 billion to Bt3.5 billion, will supply the company with raw materials for diesel production. At present, Rayong Purifier is relying on condensate supplies from the PTT Group.

"We have not yet finalised when to start the refinery's capacity increase or the construction of the condensate plant. These need approval from the board of directors," Supapong said.

A partial test run has been carried out on the company's B100-formula biodiesel plant. From an expected capacity of 300,000 litres a day, the plant will initially operate at half of its maximum capacity.

Rayong Purifier has also embarked on an expansion into Vietnam with the construction of a small refinery capable of producing 2,500 barrels per day. A test run has been held with satisfactory results.

The success has attracted joint investment from several Vietnamese operators, and once the joint-investment deals are finalised, the plant's capacity could be enhanced to 10,000-20,000 barrels per day.

Supapong expects to wrap up the partnership deal in the first half of this year. Two options have been short-listed: a new joint venture or an equity-holding in the existing company. If the second option is chosen, the Vietnamese partners could hold a combined stake of 51 per cent, he said.

Rayong Purifier also plans play an increasing role in the retail oil business, with plans to open more petrol stations in Bangkok and upcountry. From 61 stations at present, it expects to have 75 by the end of this year and 100 next year. Each new station will each Bt25 million to Bt30 million.

Supapong said Rayong Purifier expected to chalk up revenue growth this year of 25-30 per cent over last year, when it recorded revenues of Bt19.55 billion. This forecast is based on the upward trend in global oil prices and more transactions in the market.

Last year, the company posted a net profit of Bt183.38 million, down sharply from Bt367 million in 2005.

Energy Reporters

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