Page 30 - PSTC - One Report 2023 (EN)

Annual Report 2023 (Form 56-1 ONE REPORT)
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5) The Petroleum product transportation business by pipeline system (TPN)
Thai Pipeline Network Company Limited (TPN), a joint venture between a group of companies and EGCO Public Company Limited. It provides Petroleum product transportation services via pipelines and Petroleum product depots in Khon Kaen Province. TPN’s Petroleum product pipelines connect from the Petroleum product depot station in Saraburi Province to the Petroleum product depot station in Khon Kaen Province, covering a total distance of 342 kilometers, passing through 55 sub-districts, 18 districts, and 5 provinces. TPN’s Petroleum product depot is the largest and most modern in the northeastern region, located in Ban Phai District, Khon Kaen Province, occupying approximately 200 acres of land. With a total tank capacity of 157 million liters, the construction value of the project is estimated at around ten billion baht, covering both the pipeline and Petroleum product depot components. This project has been authorized by the Department of Energy Business, Ministry of Energy, and there is no specified end date for its operation.
Currently, TPN is in the process of commissioning to commence commercial operations within the early months of the year 2024, with its primary customer group being large-scale Petroleum product traders within the country who transport Petroleum product to the northeastern region.
Currently, Currently, Petroleum product traders, who are the main target customer group of TPN, primarily use road transportation for Petroleum product transport. However, if these customers switch to using TPN’s pipeline Petroleum product transportation system, it would help reduce road accidents and save costs for Petroleum product traders. Pipeline transportation has lower transportation costs compared to road transportation and can also reduce carbon dioxide emissions by up to 80,000 metric tons per year, equivalent to planting approximately 67,000 hectares of forests. Carbon credits would belong to the users of TPN’s pipeline transportation and Petroleum product depot, which supports carbon neutrality policies and achieves the country’s net-zero greenhouse gas emissions target. This is a sustainable growth initiative aligned with environmental conservation and social responsibility.