Bangkok Aviation Fuel Services Plans a $35M Oil Pipeline to Boost Trade in Northern Region

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Bangkok Aviation Fuel Services Plans a $35M Oil Pipeline to Boost Trade in Northern Region

Bangkok on the map (© Shutterstock/Peter Hermes Furian)
Bangkok on the map (© Shutterstock/Peter Hermes Furian)

Bangkok Aviation Fuel Services Plc (BAFS) has announced its intention to construct a new oil pipeline to strengthen its trade operations in the northern region, Bangkok Post reported on Wednesday, June 14, 2023.

The planned pipeline, spanning 52 kilometers, will connect the provinces of Saraburi and Ang Thong, facilitating oil transportation from the East to the north. The estimated cost of the project is 35 million US-$. Nathasit Diskul, President of BAFS, clarified that this investment is separate from the company's previously announced capital spending plan.

BAFS is currently discussing with Thai Petroleum Pipeline Co about implementing this new oil pipeline venture. Thai Petroleum Pipeline, in which PTT Oil and Retail Business Plc holds the majority shares, currently operates an extensive oil pipeline network that links refineries in the eastern region.

The oil storage facilities owned by BAFS in the Laksi area of northern Bangkok rely on the oil pipeline network mentioned earlier in this article, primarily serving planes at Don Mueang Airport.

BAFS's subsidiary, Fuel Pipeline Transportation, operates an oil pipeline connecting the Bang Pa-in district of Ayutthaya's Bangchak Corporation Plc oil refinery to Lampang, a province in the north.

The Ayutthaya-Lampang pipeline commenced operations in 2019 under its initial phase and, by 2021, provided a full service with a capacity to carry 2.45 billion liters of oil per year. However, Fuel Pipeline Transportation reported that in 2022, only 20% of the pipeline's total capacity, approximately 410 million liters, was utilized.

Transporting oil to the Northern provinces will contribute to the government's efforts to reduce carbon dioxide emissions caused by trucks.

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