SET-listed Scan Inter Plc (SCN), a natural gas trader and operator of compressed natural gas (CNG) stations, has joined with Japanese trading giant Sojitz Corporation to invest in a comprehensive gas-related business, expecting to tap into higher demand in Asean.
Scan Inter president Ritthi Kitphiphit said the two companies will use their expertise in natural gas to develop new products, particularly gas cylinders for cars.
He said Sojitz is a big trading company with strong experience in marketing and product sourcing, and can help penetrate the market and supply the new gas cylinders for cars to customers across the world.
Scan Inter, which is keen on engineering and gas-related technologies, would produce several types of gas related products and gas cylinders to match demand.
"It is cooperation for the future, starting with a new product, CNG Type IV, which is a gas cylinders for cars," he said.
Mr Ritthi said the two companies will start accessing Indonesia as the first market for its gas cylinders as demand in the gas in transport sector is expected to grow substantially after its government's clear policy to make gas a priority fuel.
The Indonesian government has placed policies to support gas, with plans to have up to 5,000 gas stations nationwide in the next few years, from 112 stations.
Mr Ritthi said the second country it aims to enter is Vietnam, where demand for natural gas is expected to grow in line with the economy.
Cooperation with Sojitz is a part of the company's expansion, for which it has set aside an investment budget of 1.4 billion baht, mostly to increase the network of gas stations.
Scan Inter expects to buy more CNG from PTT Plc for its new gas stations, expecting gas sales to rise by an extra 200,000 kilogrammes a day.
The company is also in talks with several potential partners with the hope of increasing its gas stations by 13 this year, for a total of 20 stations. It is looking for partners to add petrol pumps to gas stations, rather than selling CNG gas alone. This will help expand its marketing channels, said Mr Ritthi.
Scan Inter posted a net profit of 308 million baht in 2016, up from 225 million baht in 2015.
SCN shares closed yesterday on the SET at eight baht, up five satang, in trade worth 101 million baht.