PTT, Thailand’s largest oil and gas conglomerate, plans to start an oil retailing operation in Burma with a local partner, the Bangkok Post reported on Monday.
PTT Oil Myanmar will have retailing and wholesaling, plus depot and transport operations, said a company official.
An official said PTT’s goal to become a regional oil retailer within five years, said Auttapol Rerkpiboon, executive vice president for communication and international markets. The move is expected to begin sometime in the next six months, following passage of Burma’s new foreign investment law.
"Myanmar has very strong potential in the oil retailing business. Demand is expected to grow sharply after the country opens to foreign investors and tourists," said Auttapol.
Currently, Burma’s oil consumption per head is very low at 38 litres annually, compared to 140 litres in Cambodia and Thailand's 700 litres. Each year, Burma consumes 2.4 billion litres of oil compares with 44 billion litres in Thailand.
PTT earlier this month signed a memorandum of understanding with Myanmar partner Denko Trading Co to study business opportunities there.
Demco, the local conglomerate, operates 15 petrol stations in Yangon with a land bank of about 60 rai that is expected to be developed into an oil depot.
Auttapol said the feasibility study will take around six months to complete. The group expects to use the PTT brand in developing business in Burma.
PTT said it would aggressively expand its lube oil business in Burma with an aim to become the second largest player there. Currently, it ranks third with a 15 per cent market share after Thailand's Trane (30 per cent) and UAE-based Falcon (18 per cent).