Thailand EGCO enters oil business
Source：The Nation Newspaper
From：Taiwan Trade Center Bangkok
Update Time：2019/11/01
Electricity Generating Group (EGCO) has announced its expansion into other energy sources with a 44.6-per-cent share of Thai Pipeline Network Co Ltd.
It will manage an oil pipeline’s extension to the Northeast, “opening up a new opportunity with good and long-term investment return”, president Jakgrich Pibulpairoj said on Wednesday (September 25).
“EGCO acquired equity shares in TPN, which provides an oil-pipeline transportation service to the Northeast and an oil depot service, from Biggas Technology Co Ltd.
“We earlier acquired 7,739,998 ordinary shares of TPN at Bt100 par value, representing 43 per cent of the total, and have now subscribed another 3,185,000 shares at the same price,” Jakgrich said. “Combined, we have 10,924,998 shares in TPN, or 44.6 per cent of total registered capital after capital increase. The total consideration for the transaction is approximately Bt3 billion.”
The planned oil pipeline – a newly constructed 342.8-kilometre underground line – will connect a Thai Petroleum Pipeline Co (Thappline) depot in Saraburi to TPN’s 142-milion-litre depot in Khon Kaen.
Now under construction with operations due to start in late 2021, it will have a capacity of 5.4 million litres and can be boosted to 7.3 million litres in the future.
“This investment marks EGCO’s further step towards investment in energy-related businesses,” Jakgrich said. “This is a large-scale project with significant importance to the Thai economy.”
Supported by the government, the pipeline will be able to meet increasing demand in the Northeast.
Source：https://www.nationthailand.com