Electricity Generating Public Company Limited (SET: EGCO) has announced that the Extension of Petroleum Pipeline system to Northeastern Region Project (the Project) managed by Thai Pipeline Network Company Limited (TPN), in which EGCO holds a 44.6% ownership interest, was fully commenced its operation on October 4, 2023.
TPN operates an oil transportation service that utilizes a pipeline network to deliver oil to the Northeastern Region of Thailand. Additionally, they provide terminal storage business. The pipeline system covers a total distance of 342 kilometers and boasts an annual transport capacity of up to 5,443 million liters.
This infrastructure facilitates a connection between the storage facility of Thai Petroleum Pipeline Co., Ltd (Thappline) in Saraburi Province and TPN’s proprietary storage terminal, capable of holding 157 million liters, located in the Ban Phai District of Khon Kaen Province. Since September 2023, the nation’s prominent oil retail companies have been availing themselves of this service, consistently receiving oil shipments.
In this regard, the Extension of Petroleum Pipeline System to Northeastern Region Project is intended to support EGCO’s strategy of expanding investments in energy-related businesses and reducing carbon emissions by up to 80,000 tons of carbon dioxide equivalent per year, with carbon credits accruing to the users of the oil transportation pipeline system and TPN’s oil storage facilities.
Additionally, the Project plays a role in supporting EGCO’s goal of achieving a net-zero target by the year 2050. This Project is of significant magnitude and holds economic importance for the country, aligning with the government’s promotion policies to meet the increasing oil demand in the Northeastern Region. It also aims to reduce transportation costs and enhance efficiency in delivering oil to the Northeastern Region, thereby mitigating traffic congestion and road accidents.
