Complex Refinery with on-going value enhancement and integration with own distribution channels
Distribution networks of BCP’s oil products, equipped with supplementary non-oil businesses to increase its market share and sales volume
The largest national biofuel producer and distributor, enhancing future growth opportunities
Ensuring energy security long term competitiveness
Engage and invest in domestic and overseas green power businesses, including solar, wind, and geothermal power
Gasohol and diesel from Bangchak Refinery are certified by the government as Euro 4 Standard-compliant. Its refinery is the first in Asia that produces eco-friendly Gasohol E20 to meet the Euro 5 Standard with less than 10 parts per million (ppm) of sulfur or five times lower than the Euro 4 standard. Bangchak also focuses on improving process energy stability by using electricity and steam from a cogeneration power plant, using more environmentally friendly natural gas in place of fuel oil, and enhancing the efficiency of refining processes with the 3E and YES-R projects to increase its capacity. To increase the capacity and process operation for maximum benefit, the following additional efforts have been made:
Most of the new stations opened in 2018 are spacious with a modern look. They accompany supplementary (non-oil) businesses that increase the company’s market share and uphold its second place. Bangchak also sells products to users in the industrial, transport, airline, shipping, construction, and agricultural sectors. In addition to emphasizing the sale of high-performance and eco-friendly gasohol and diesel, Bangchak stations provide value-added facilities through non-oil businesses and supplementary services, including a convenience store, coffee shop, freshly cooked fast food restaurant, car maintenance, and car wash.
Bangchak is the first oil company in Thailand to introduce the member card. In 2018. It celebrated the 12th anniversary of its member card business by introducing the “Bangchak Green Mile” card and point collection for existing card members. Members can collect points from their purchases of all types of oil products as well as other products and services under the Bangchak umbrella. To make point collection fast and convenient, Bangchak Mobile Application was introduced for members to use their points for redemption in the form of e-coupons.
The convenience store and coffee shop businesses are now managed by Bangchak Retail Co., Ltd. (BCR), one of the subsidiaries who acquired a master franchise of “SPAR”, a supermarket chain from the Netherlands. There are currently 45 branches of SPAR, rendering service under the concept of SPAR Fresh & Easy Food Market. As for the coffee shop business, altogether 523 outlets of “Inthanin” and “Inthanin Garden”, the premium Inthanin, have been opened. The company sells consumer products through three versions of the convenience store, namely Baichak, Lemon Green, and Mini Big C, the latter located at over 165 large stations near communities. Bangchak stations also house “Lemon Kitchen”, offering freshly cooked fast food, and car maintenance service, which comprise “Furio Care” lube oil changing, “Wash Pro” and “Green Wash” car wash, and “Tyre Care” and “Green Tyre” tire replacement services.
Bangchak recognizes social trends and lifestyle changes of modern Thais. Therefore, its service stations are developed under the Greenovative Experience model that features the 4Rs processes (renewable, recycle, reuse, and reduce). Projects conceived from 4Rs include the installation of a solar rooftop to generate electricity and EV charging stations for electric vehicles. For the Inthanin coffee shop, Bangchak runs the business under the concept of “every cup of Inthanin must contribute to the world”. Some attempts have been made in this regard, such as the use of Bio Cups, the use of organic coffee beans bought from agricultural communities in the North, and the introduction of specially designed lids to reduce the use of straws. Regarding the convenience store business, it runs such campaigns as less use of plastic bags, selling processed fruits at SPAR shops, and initiating a SPAR Award project to encourage development of community products. It also helps expand SMEs to increase their sales in domestic and overseas markets. The company promotes the use of energy-saving equipment and increase of green areas. In 2018 Bangchak introduced a newly designed station fitted with digital hanging oil-dispensing machines on Sukhumvit 62 Road to offer more convenience for motorists. Meanwhile, the Srinakarin station was installed with Green Community Energy Management System (GEMS), an innovation featuring the Blockchain technology to run a pilot project on electricity bidding, applicable for the Smart Isolated Microgrid. Gems will enable buildings and shops located in the premises of the service station to buy and sell electricity at a low cost while obtaining the largest possible volume of electricity.
In addition to fuel products, Bangchak produces and sells lubricants and specialty products such as transmission oil, brake fluid, and grease under the “BCP Lubricants” brand. These products are sold to the domestic market through its network of service stations, retail shops, industrial plants, OEM markets, and international markets.
This year the company launched a premium grade lubricant under the "FURiO" brand. The fuel-saving product was designed to protect engines against wear and tear under all conditions.
At the end of 2017, Bangchak completed the amalgamation of BBP Holdings Co., Ltd., a subsidiary, with KSLGI Co., Ltd., a subsidiary of Khon Kaen Sugar Industry Public Company Limited, to form BBGI Co., Ltd. The company was then listed in April 2018 and became BBGI Public Company Limited, with Bangchak holding a 60% stake. The four associates and subsidiaries under BBGI have a combined capacity of over 1.83 million liters per day, comprising 900,000 liters of ethanol and 930,000 liters of biodiesel per day.
By the end of 2018, BCPG commanded a total capacity of 571.1 MW from worldwide operations. Of the total capacity, 380.2 MW is in operation, and 190.9 MW in progress. In Thailand, BPPG has a total capacity of 190.9 MW from solar farms, all of which have become operational. In Japan, BCPG also runs solar projects. However, after having sold the Nagi and Nikaho projects (with a combined capacity of 27.6 MW) to an infrastructure fund in Japan, of which the divestment process was completed on September 28 this year, BCPG’s installed capacity totaled 168.7 MW. Of this, 17.4 MW is in operation, while 151.3 MW is under development. With regard to wind energy, BCPG has an equity capacity of 20 MW, of which 14.4 MW is in operation, and 5.6 MW in progress. A geothermal power plant is also BCPG’s interest. It has an equity capacity of 181.5 MW. So far, 157.5 MW is in operation, and 24 MW is in progress. In 2018, BCPG bought shares in Lom Ligor Co., Ltd., the operator of a 10 MW wind power project. The site, located in Amphoe Pak Phanang, Nakhon Si Thammarat, is currently under development, with commercial operation expected around mid-2019.
Bangchak has established BCP Energy International Pte. Ltd. (BCPE) in Singapore to operate its international businesses involving energy, petrochemicals, and natural resources. It currently wholly owns Nido Petroleum Pty Ltd, which holds the rights for petroleum production at Nido and Matinloc fields in the Philippines. The company also owns the rights for the exploration and development of West Linapacan field in the Philippines as well as the rights in blocks SC6B, SC14D, SC54A, SC54B, SC58, and SC63, also in the Philippines, which are now in their exploration stage.
On July 12, 2018, BCPE entered into an agreement to sell shares in Nido Production (Galoc) Pty., Ltd., an indirect subsidiary, which owns the rights over the Galoc oil field, to Tamarind Galoc Pte., Ltd.
Bangchak also established BCP Innovation Pte., Ltd. (BCPI) in Singapore to conduct businesses involving international innovation. BCPI acquired common shares in Lithium Americas Corporation, a listed company on the Canadian Stock Exchange and New York Stock Exchange. Its business is lithium mining in Argentina and the United States to produce lithium carbonate and lithium hydroxide, key components for battery production in response to soaring demand for lithium batteries in renewable-energy power plants. The production also supports the stability of transmission systems and the generation of electricity from renewable energy, as well as the use of batteries in electric cars and various portable electronic devices.
R&D and Innovation Business
Bangchak established Bangchak Initiative and Innovation Center (BiiC) to create a Green Ecosystem to drive innovation with a focus on green energy and bio-based businesses. Research and development (R&D), together with technological and network management, help encourage business expansion (both domestic and abroad) in parallel with the incubation of startups under the Thailand 4.0 economy. Its ultimate goal is to join the Evolving Greenovation Group in Asia.
In 2018 BiiC carried out the Green Community Energy Management System project (GEMS), which involves the generation of green energy at service stations. Electricity produced at a station is bought and sold through the bidding method between buildings and shops on the premises of Bangchak’s Srinakarin Road service station in Samut Prakan. It is the first experimental site for this new method of power sale and purchase. The roofs of the station as well as the parking area and SPAR building are installed with solar panels to generate 249 kilowatts of electricity. The system is also fitted with an energy storage system or a 1-MW lithium-ion battery, Thailand’s largest battery.
In response to the expansion of startups in Thailand, Bangchak set up four new companies, namely BCV Bio Based Co., Ltd., BCV Energy Co., Ltd., BCV Innovation Co., Ltd, and BCV Partnership Co., Ltd., to conduct a venture capital business and invest in startups, focusing on the 10 government-promoted businesses. This will bring about collaboration in innovations between Bangchak and its own subsidiaries as well as other business partners.