PTT Plc, the national oil and gas conglomerate, has decided to scrap its 10-billion-baht investment plan for the second unit of the depot facility for imported liquefied petroleum gas (LPG) in Chon Buri due to falling domestic demand.
Chief executive and president Pailin Chuchottaworn said demand for imported LPG in July dropped as much as 50% to 80,000 tonnes per month, from 160,000 tonnes a year ago
Besides, global oil prices plummeted more than 50% to nearly US$50 per barrel, encouraging motorists to resume using petrol and diesel instead of LPG.
However, the 235% rise in net profit of its oil refinery business and 197% increase in profit from liquefied natural gas (LNG) facilities and trading business have helped offset losses.
PTT expects losses from the compressed natural gas (CNG) business in the second half of the year to be less than in the first half, when it had losses of 5.5 billion baht.
PTT saw losses from CNG each year of around 20 billion baht due to fixing the retail price at 8.5 baht for more than six years, before the price was raised to 13 baht last October.