Message from Chairman
DR. Thanong BidayaChairman
The overall image for the natural gas energy industry in 2017 is the year that consumers have a better understanding of the NGV price structure more. Consumers are also more aware that NGV is the cheap alternative and creates most value compared to other fuels for vehicles.
In the period when oil fuel prices rose, the average difference for NGV price is still 50% cheaper than diesel and 50-60% cheaper than benzene. Since the NGV price structure in Thailand is set to adjust slower than oil fuel prices, as well as a price calculation formula that makes NGV gas prices cheaper than other fuels e.g. diesel and benzene, therefore transportation entrepreneurs to still constantly choose NGV as the main energy source.
Also, other private sectors than PTT have received the chance to invest and expand their NGV service station businesses freely and changing contracts to trade natural gas according to the heat value beneath a new pricing structure. Originally, private sectors earned revenue from marketing values by selling gas. This has enabled more private sectors to have potential, financial readiness and the interest to invest in NGV service station businesses due to the increased revenue of selling NGV from the former 2 THB/ kg to 3.43 THB/kb from the new pricing structure.
Meanwhile, the rising oil fuel price has driven industries to seek the lowest cost for energy. This has positively affected the Industrial Compressed Natural Gas (iCNG) business group to significantly grow. As the Company positions itself as leader in NGV innovation, we have advantages compared to our competitors, clearly proven when SCN signed the 489 NGV buses selling contract at the end of the previous year.
For 2018, we visualize this as a great opportunity for the Company, as the operator of complete natural gas recurring businesses to penetrate the market and expand our business in order to strengthen outcomes. From careful operation plans along to the Board’s expert experience in the business and industry, the organization will be propelled forwards toward success. Still, SCN aims to seek new business opportunities associated to the energy industry and projects which our professionalism and expertise can be exercised to fortify our business and sustainably grow.