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| - To Become Thailand's 2nd Largest CNG/NGV Provider - |
BANGKOK, Jan 29, 2016 - (ACN Newswire) - Scan Inter PCL, or SCN (SET:SCN), the operator of a fully-integrated CNG/NGV business, has announced the intended acquisition of at least 3 NGV service stations, both within and outside of the gas pipeline areas. The estimated investment is approximately 200 million Baht, with the ultimate aim of becoming Thailand's 2nd largest NGV provider. SCN expects to generate revenue from the NGV business totaling 2,000 million Baht annually.
In this regard, SCN is responding positively to the government's policy in allowing the private sector to invest in the expansion of the NGV service station network, as well as floating the NGV price with some conditions. It has indicated that this is of benefit to SCN's NGV business for the automotive market.
Dr. Littee Kitpipit, Executive Director, Administrative & Marketing Director, SCN, has commented positively on the government's policy to float the NGV price, conditional upon PTT's price guarantee that does not exceed 13.50 Baht per kilogram before floating the price entirely to reflect its true cost in July. He said this is advantageous to the Company since the floating of NGV price in relation to the oil price in the market keeps the NGV price cheaper than diesel price by about 50% in the long run. This in turn encourages confidence among NGV users and results in higher NGV demand in the future.
Meanwhile, this particular development has allowed PTT Group and private sector companies to expand their NGV service station network around the country in order to facilitate more convenience for customers. It is also SCN's prime opportunity to expand its NGV business, particularly gas service stations serving the automobile segment to drive more revenue from NGV sales.
Dr. Littee stated, "The estimated investment budget is approximately 200 million Baht and this initiative is expected to generate higher NGV revenue, on top of the Company's existing 7 NGV stations; 4 of which are owned and operated by the Company and 3 of which are under the cooperation with Susco PCL. It is anticipated that the 10 NGV service stations together will generate daily sales volume of over 450,000 kilograms, or equivalent to 2,000 million Baht annually.
"The government's policy in support of the gas service station expansion and floating the NGV price is of great benefits to SCN's business this year as the Company will be able to generate higher revenue from natural gas-related businesses, especially outstanding growth in the natural gas service station business, eventually enabling SCN to become Thailand's 2nd largest operator with highest NGV sales after the market leader PTT Group," said Dr. Littee.
Contact:
MasterMind Communications Co Ltd
(for Scan Inter PCL)
Orn-arong ("Fah") Pattaravejkul
T: +66-2-612-0281 #129
M: +66-86-884-4458,
E: ornanong.p@mtmultimedia.com
orn_tabo@hotmail.com
Topic: Press release summary
Source: Scan Inter PCL
Sectors: Gas & Oil, Energy, Alternatives
https://www.acnnewswire.com
From the Asia Corporate News Network
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