PTT launches biomethane gas project

PTT is starting an innovative project to purchase compressed biomethane gas (CBG) from Universal Adsorbents & Chemicals (UAC) to sell as natural gas for vehicles (NGV) in order to help reduce NGV imports by Bt21 million a year.

Punnachai Footrakul, vice president for NGV marketing at PTT, said the company had signed a contract with UAC to purchase CBG for 15 years starting from 2012. CBG bought from UAC will be used as NGV in two gas stations in Chiang Mai province.

"If this works commercially, PTT may expand the volume purchased from UAC in order to reduce NGV imports," he said.

Presently, NGV accounts for 9 per cent of total gasoline and diesel consumption. The amount is equivalent to oil imports worth Bt50 billion to Bt60 billion per year, he said.

PTT expects to sell NGV from CBG next year. The capacity of six tonnes per day could fill 500 compact cars or 40 transportation trucks. The amount could replace diesel imports of 2.2 million litres per year or liquefied petroleum gas (LPG) imports of 1,600 tonnes, which would save the country Bt21 million.

Kitti Jivacate, president and CEO of UAC, said the company would purify biogas from dung and wastewater from Mongkol and Sons pig farm in Chiang Mai. The biomethane gas from the droppings could be turned into NGV.

UAC will start construction of the CBG plant this month. Investment cost is around Bt100 million, with test runs commencing late this year. The CBG plant will have daily production capacity of 6-8 tonnes, or 3,000 tonnes per year.

The company will start realising revenue early next year, expected to be around Bt50 million to Bt60 million in the first year of operation.

"The revenue from the new business is expected to account for 10 per cent of our total revenue. I aim to balance the revenue from CBG and our existing business of selling chemical products within the next five years," he said.

UAC generated revenue of Bt849 million last year.

Kitti added that the company was in talks with two companies to cooperate in a similar new project in the South. If it can acquire more material to produce CBG, the company will expand business collaboration with PTT in the future.