Bangchak committed to develop sustainable business innovation in harmony with the environment and society through the 4S strategy
Security : Create energy security by focusing on the source of energy.
These are the core businesses of the Company that provide energy security for the country by implementing a joint business strategy among the Refinery and Oil Trading Business Group, Marketing Business Group, Clean Power Business Group, Natural Resources Business Group, as well as the Bio-Based Products Business Group to sufficiently supply, produce, and distribute oil and biofuel to meet the needs of both industries and the public. This aligns with the overall energy demand trend, and although electric vehicle usage is expected to increase in the future, these businesses remain essential for the country’s energy needs and continue to grow steadily. In September 2023, The Company acquired rights over the Bangchak Sriracha Refinery, operated by the Bangchak Sriracha Plc. (BSRC), a modern complex refinery with nameplate capacity of 174,000 barrels per day. The Company has two refineries with a combined nameplate capacity of 294,000 barrels per day, enhancing energy security according to strategy.
Synergy: Create collaboration to transform and create products and services covering all business groups.
The focus is on conducting businesses that align with the expertise of Bangchak Group and in line with the core business unit (S1), such as oil transportation and logistics, public utilities and energy infrastructure, food and beverage, and mining, to increase revenue and create shared value for the portfolio. In 2022, the Company established the Bangkok Fuel Pipeline and Logistics Co., Ltd. (BFPL), with plans to expand the business to accommodate a comprehensive fuel transport system. In 2023, the Company acquired shares in Bangchak Sriracha Public Company Limited (BSRC), which is an important step in upgrading the capabilities and potential of business operations. and established Refinery Optimization and Synergy Enterprise Company Limited (ROSE) representing a giant leap in elevating its capability as well as being a strong leader in the multinational energy business through synergy and the development of the Platform for Growth. Such endeavor is for sustainability, accessibility, and security in energy that is ready to drive towards a low carbon society.
Sustainability: Develop and extend core businesses to achieve growth and sustainability.
To develop related business that support or expand Core Business growth and sustainability to accommodate future technology and changes, and challenges posed by global climate change, The Company has accelerated its investment growth in clean and green businesses that aim for net zero and/or carbon neutrality. Examples include investment and development of the lithium battery business in preparation for EVs and development of high-value bio-based specialties with investment in Manus Bio Inc., a reputed global company with leading bio-innovative technology on advanced bio-fermentation. BiiC is a dedicated institute under Bangchak in charge of promoting innovations for the environment and society through investment in startups and partnering with external R&D organizations to relentlessly advance Bangchak’s green businesses and development of bio-based specialties for domestic and international markets. The Company established the BSGF Co., Ltd., a joint venture between BBGI Plc. and the Thanachok Oil Light Co., Ltd., to engage in the procurement of raw materials, the production and distribution of Sustainable Aviation Fuel (SAF) derived from used cooking oil. In 2023, Bangchak, through BCPG Plc., expanded investment into four natural gas power plant (CCGT) projects in the United States of America, with 857 MW already in operation, consisting of the 341 MW Carroll County Energy project (CCE), the 90 MW South Field Energy project (SFE), the 212 MW Liberty project, and the 214 MW Patriot project for the sustainable growth of clean power business.
Scalability: Build flexibility and focus on seeking opportunities and driving new business in the future (New S-curves) to support long-term growth.
To sustain long-term growth, Bangchak focuses on reforming its revenue stream that leverages new S-curve businesses that produce extensive benefits for the Corporation. At the same time, Bangchak is poised to deal with technological transformation, emerging risks, and market volatility. The Company continues to lead with the “4 Green Sustainability Strategy,” as a framework for business operations and investments.
The 4S STRATEGY
Bangchak has adopted revised Vision, Mission, Core Value and 4S strategy
in each business unit’s strategy for continuing to maintain high performance and to balance the business growth. This leads diversification and synergy of its portfolio through 5 main businesses with acceleration in new economy (green) portfolio to achieve a target of Carbon Neutrality by 2030 and Net Zero GHG Emission by 2050 to support the energy transition while balancing energy security and committed to be the leader of the low-carbon society.
The 4 Green Strategy
Bangchak focuses on investment in businesses that foster sustainable values. Besides growing revenue from new undertakings, this strategy represents green initiatives applied to businesses, including high-value bio-based products derived from agricultural produce via biotechnological innovation extended from biofuel production and sales. The Company also values Energy and Climate Technology and energy management, Biotechnology among others, involving BiiC, which incubates startups to further Bangchak’s businesses in the future.
Bangchak focuses on environmentally friendly and safe operations with optimal efficiency in utilization of water and energy resources. To achieve these goals, Bangchak has adopted the operating systems certified by ISO 14001, ISO 50001, and Green Industry (Green Network) Level 5 of the Ministry of Industry standards in addition to Eco Factory from the Federation of Thai Industries, the occupational health and safety standard of ISO 45001, and advanced operating systems under Process Safety Management (PSM).
Bangchak strives to be a creative and sustainable destination of all age groups, focusing on leadership in developing greenovation through varied goods and services and non-oil businesses at “Bangchak” service stations, which serve as a destination that fulfills customers’ needs while exercising sustainable stewardship.
Bangchak strives to maintain a balance between ‘value’ and ‘virtue’ to address the Energy Trilemma, while also upholding its commitment to ethics, environmental and social responsibility, corporate governance, and operations through the BCG Economy Model.