24 November 2023
From Small and Steady Steps in Thailand to
the Forefront of Asia Pacific’s Refinery and Oil Trading Business
“We have made our way to where we are today as we acknowledged the limitations of our Bangchak Phra Khanong Refinery, both in terms of the lowest production capacity and its location away from the sea. Therefore, we have evaluated and pursued business strategies by engaging employees to participate, initiate, and foster a sense of ownership. Today, even though we remain the smallest, we are also the most efficient refinery with the lowest refinery operating costs per barrel,” stated Thamarat Paryoonsuk, Senior Executive Vice President, Refinery and Oil Trading Business Group, Bangchak Corporation Public Company Limited.
Bangchak Phra Khanong Refinery
Business Operations Covering the Entire Supply Chain
Thamarat explained that success in the refinery business requires a strong and competent team to operate; likened to the arms and legs of the human body. This forms the foundation upon which various affiliated companies were established. Bangkok Fuel Pipeline and Logistics (BFPL) was established to manage road and sea fuel transportation both domestically and internationally, a critical component that maximizes the cost efficiency of fuel transportation.
At the same time, the procurement of suitable crude oil for the refinery is another critical factor. In 2016, Bangchak established BCP Trading Pte. Ltd (BCPT) to operate oil trading business (dealing with both crude oil and refined products) in Singapore. Currently, it conducts international trade with more than 20 countries and over 100 global contractual partners, aiming to become a sustainable supplier certified by ISCC (International Sustainability and Carbon Certification).
The latest affiliate, Refinery Optimization and Synergy Enterprise Company Limited (ROSE) was established to engage in planning and provide refinery management services, including crude oil procurement, production planning, logistics, price risk management, and sales management. Today, Bangchak Sriracha Refinery has been incorporated into Bangchak Group. Therefore, ROSE will help optimize the operational efficiency of both Bangchak refineries.
From the country’s smallest refinery, Bangchak’s Refinery and Oil Trading Business Group has proudly emerged at the forefront of the business in the Asia Pacific region in full force.
Offering High Quality Products with Efficiency
“Bangchak Phra Khanong Refinery is capable of developing new products catering to niche customer specifications, such as UO, Solvent, Wax, and has transformed into a High Value Specialty Products Refinery. It is the world’s only refinery to receive the Global Performance Excellence Award 2023 – World Class and has successfully produced 5 low-carbon products with lower carbon dioxide emissions than the national average of Thailand and below the standard for both domestic and international refinery benchmarks. These achievements result from continuous improvement projects, notably the latest initiative, FAST+ (Focus Analysis Success Transform+), aimed at enhancing production processes efficiency for maximum benefits.”
Pioneering Sustainable Aerospace with Clean Energy
Bangchak reaffirms its role as a leader in energy transition by pioneering the Sustainable Aviation Fuel (SAF) business, a critical solution to reduce carbon dioxide emissions from the aviation industry, through BSGF Company Limited, the first and only producer of SAF from used cooking oil in Thailand. Bangchak is ready to expand its business potential for greater strength under new contexts.
“Today’s successes are part of our endless journey, as we stand ready to adapt and embrace circumstances, exploring new opportunities to develop our businesses with efficient processes and environmentally friendly production technologies. We remain committed to Bangchak’s goal of sustainable business growth, maintaining balance, and fostering sustainability for all sectors.” Thamarat concluded.
