BAFS to build 1.2 billion baht oil pipeline linking Saraburi and Ang Thong

Photo courtesy of BAFS Group, Facebook

Bangkok Aviation Fuel Services Plc (BAFS) is set to construct a new 52-kilometre oil pipeline connecting Saraburi to Ang Thong, in a bid to enhance its trade in the northern region. The project, which is estimated to cost 1.2 billion baht, will facilitate oil transportation from the east to the north. BAFS is currently in discussions with Thai Petroleum Pipeline Co regarding the project.

Thai Petroleum Pipeline, whose largest shareholder is PTT Oil and Retail Business Plc, operates an oil pipeline network linking refineries in the eastern region. BAFS’s oil storage in the Laksi area of northern Bangkok utilises this network to serve planes at Don Mueang Airport. The company’s subsidiary, Fuel Pipeline Transportation, operates an oil pipeline connecting Bangchak Corporation Plc’s oil refinery in Ayutthaya’s Bang Pa-in district to the northern province of Lampang.

The Ayutthaya-Lampang pipeline commenced operations in 2019 and provided full service in 2021, with an oil-carrying capacity of 2.45 billion litres per year. However, only 20% of the total capacity, approximately 410 million litres, was utilised in 2022, according to Fuel Pipeline Transportation.

The transportation of oil to the northern provinces aligns with the government’s campaign to reduce carbon dioxide emissions from trucks. At the 26th UN Climate Change Conference in Glasgow in 2021, Prime Minister Prayut Chan-o-cha pledged that Thailand would intensify its efforts to address climate change and achieve carbon neutrality by 2050, as well as a net-zero target by 2065. BAFS states that the Ayutthaya-Lampang pipeline contributes to a reduction of up to 153,000 tonnes of carbon dioxide annually.

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BAFS president Nathasit Diskul anticipates the new oil pipeline project to be finalised within the next two months. The construction design has been completed, and the company has received permission to build underground pipelines and those near highways. BAFS is now awaiting approval for its Environmental Impact Assessment report to proceed with the project, reported Bangkok Post.

Nathasit also revealed that the company is considering increasing its jet fuel sales target for this year, from the previous projection of 4.2 billion litres, due to a rise in flights from China. In the first half of 2023, flights serving Chinese destinations are expected to increase from 100-125 per week to 400-500 flights between July and the end of the year.

Nathasit estimates jet fuel sales to reach 1.9 billion litres in the first six months of 2023, with sales volume predicted to grow in the second half of the year, driven by tourism. BAFS’s jet fuel sales amounted to 2.9 billion litres in the previous year.

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