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PTTOR and KBZ to Jointly Build Fuel Storage and Gas Stations
Author: Tin Mg Oo :
Thailand’s fuel distribution company PTT Oil and Retail Business Public Company Limited (PTTOR) and Brighter Energy of KBZ Group joined hands to build an oil storage facility and gas storage facility and open over 70 gas distribution stations.
The two companies inked the deal at Lotte on June 9 and vowed to invest $185 million to build storage facilities and $20 million for opening fuel distribution stations.
Under the agreement, the two companies will build a fuel storage facility capable of storing over 100 million liters. Additionally, an LPG storage facility capable of storing 4,500 tons will be built by the end of 2021. The joint venture will initially open 10 stations under the name “PTT Brighter” and expand to 70 stations across the country in the next five years.
The investment will create around 2,000 jobs for local people and the stations will include Cafe Amazon, minimarts, engine wine, service, and currency exchange counters. The two companies said this will improve local people’s SMEs and social economic condition.
Most of the people welcome these kinds of foreign investments hoping to get quality fuel with precise measurements and reasonable prices.
“When the market has more supply, the price will normally be cheaper. Our aim is to make sure our measurement and quality meet the standard in line with the government’s policy. We will store the fuel at the maximum amount to keep the price at the lowest level and distribute it in line with international norms,” said U Nyo Myint, Senior Managing Director of KBZ Group Co., LTD.
He continued that they have made careful calculations to break the usual fuel price trend in Myanmar--fuel prices going up when the dollar rate is up and remaining high when the dollar rate is low-- by storing a massive amount of fuel.
Starting from 2010, the government transferred around 260 gas stations under government operation to private sectors and opened up the sector to foreign investments in 2017. As of now, there are over 1,600 private gas stations across the country. Government, on its side, is trying to make sure that measurement of the gas stations meet the standard using mobile fuel lab. Moreover, it has also ordered gas stations to give focus on safety or their license will be revoked if they fail to meet the requirements.