Scan Inter (SET:SCN) Announces Expansion of 3 Additional Gas Service Stations; Response to the Government's Policy in Floating Gas Price
To Become Thailand's 2nd Largest NGV Provider, with 2,000 MB Revenue/Year
BANGKOK, Jan 27, 2016 - (ACN Newswire) - Scan Inter PCL, or SCN (SET:SCN), the operator of a fully-integrated natural gas business, has responded 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 benefits to SCN's NGV business for the automotive market. In this regard, SCN has announced the intended acquisition of at least 3 more 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, expecting to generate revenue from the NGV business for the automotive market totaling 2,000 million baht annually.
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 other private sector companies or PTT Group to expand their NGV service station network all over the country in order to facilitate more convenience for customers. With this, 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 with regards to the government's policy, the Company would still focus on the expansion and acquisition of the NGV service station network both within and outside of the gas pipeline areas through M&A deals or investment in the development of at least 3 additional gas service stations. 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 altogether 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.
About Scan Inter PCL
Scan Inter PCL is engaged in CNG Business, including CNG private mother stations, NGV logistics, CNG distribution and retail, CNG compressors and dispensers, NGV station installation and maintenance, high pressure equipment, and other businesses. For more information, please visit www.scan-inter.com.
Source: Scan Inter PCL
MasterMind Communications Co Ltd
(for Scan Inter PCL)
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T: +66-2-612-0281 #129
Copyright 2016 ACN Newswire . All rights reserved.
Source: ACN Newswire
(January 27, 2016 - 2:28 PM EST)
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