PanuSeetisarn, Chairman of Power Solution Technologies PCL (PSTC) and Director of Thai Pipeline Network Co., Ltd.(TPN), a subsidiary of PSTC said that "Weare pleased to award the contract for construction of oil pipeline expansion to the Northeastern region of Thailand project to China Petroleum Pipeline Engineering Co., Ltd. (CPP). The Company selected CPP to take on the turn-key project including construction and pipeline installation because of its extensive experience in this type of project for the past 40 years. CPP has completed over 100,000 kilometers of pipeline installation in Africa, Middle East, Russia, and Asia. The Company is confident that CPP will meet with worldclass standards for construction and installation of pipelines. This project is valued more than Baht 9 billion and will be completed within 30 months, and ready for use by the fourth quarter of 2021".
The pipeline installation will run 342 kilometers, covering 55 sub-districts (Tumbols), 18 districts (Amphurs), and 5 provinces, starting from Amphur Saohi, Saraburi ending at Amphur Baanpai Khonkaen, inclusive of a 140-million-liter oil storage terminal at Baanpai Khonkaen.
Once completed, the transportation of oil by land will be reduced by 88,000 trips per year, or a saving of over 15.4 million liters per year while improving efficiency of oil transport. Moreover, it will help to improve safety, reduce accidents on the roads, and reduce road maintenance costs. All in all, the oil price for the northeastern region will be reduced due to lower transport costs.
In addition, Thai Pipeline Network Co., Ltd. (TPN) and China Petroleum Pipeline Engineering Co., Ltd. (CPP) are jointly conducting a feasibility study in expanding the installation of the oil pipelines to the Lao Peoples' Democratic Republic to increase the efficiency of exporting oil to the country. Currently, the country is importing over 1,200 million liters of oil from Thailand with increasing trends due to growing economic and social status of the country.
"The Company is proud to have received the trust and resolution from the Ministry of Energy to proceed with the project to expand the oil pipelines to the northeast. When completed, the benefits will include lowered oil price, improved safety in transport, and reduce impact on environment and result in expansion of the regional economy. The sustainability in oil resource will make our country more competitive and become the center of energy for the ASEAN region", Panu added.
The resolution of National Energy Policy Committee (NEPC) dated August 13, 2015 approved the expansion of oil pipeline to the north and northeast regions of Thailand. Thai Pipeline Network Co., Ltd. (TPN) received the approval of the NEPC to proceed with the project to expand the oil pipelines to the northeast region of Thailand. TPN conducted surveys along the routes, developed designs, engineering systems, and submitted the findings on the environmental impact assessment to the National Environmental Committee, Ministry of Natural Resources and environment and received the approval on January 8, 2019.
About Thai Pipeline Network Co., Ltd. or TPN
Thai Pipeline Network Co., Ltd. or TPN operates as a subsidiary of Power Solution technologies PCL or PSTC, a company registered in the Stock Market of Thailand. The Company was established on October 1, 2015. At present, the paid-up capital is registered at Baht 1,350 million, split into13,500,000 ordinary shares at par value of Baht 100.00 per share. The business is mainly in domestic and international transports and transfers of oil through pipelines. The Company's main objective is to expand oil pipelines to the northeast region of Thailand, considered as a strategic oil distribution base to the region as well as the AEC countries mainly Laos, Vietnam and Cambodia.
About the Parent Company: Power Solution Technologies PCL or PSTC
Power Solution Technologies PCL or PSTC is a registered company in the Stock Market of Thailand. The Company was founded on June 25, 2001 and registered in the MAI on December 19, 2014 having three main businesses: 1. Offers power backup solution, power management system, and build alternative energy power plants; 2. Sells electricity from various energy sources to the government sector. Currently, the Company supplies 30 MW and is in the process of building another 40 MW; 3. Distributes liquified petroleum gasesincluding LPG, CNG and LNG and the latest addition being the oil pipeline transport to the northeastern region of Thailand which will be completed by fourth quarter of 2021.