Industrial Compressed Natural Gas
The industrial compressed natural gas business sells natural gas directly to industrial plants. By providing service in transporting compressed natural gas by trucks, the customer can consume natural gas straight from the pipeline despite having businesses located outside of the natural gas pipeline. These customers who operate in the industrial sector demand for energy security while waiting for the pipeline to be installed at their locations. Customer groups also include industrial plants who aim to conserve business environments. The first operations were at Pathumthani starting from April 2015 onwards. In 2016, the industrial compressed natural gas started to gain popularity from larger industrial sectors and operators resulting in increased amounts of customers who operate in the industrial sector.
To the fact that Scan Inter Public Company Limited has been running business related to Natural gas which is not yet to date a widely used by manufacturers due to pipe rate coverage. As a matter of fact, natural gas pipe line only covers less than 10% from a total number of factories in Thailand. So as to, natural gas is publicly known by its environmental friendliness, safety and economical type of fuel. The company has deliberately invented a system that gives an ability to off-pipeline factories to react out to natural gas. Which, this group of producers is considered majority with a proportion of 92% of all manufacturers in Thailand. Originally, there was a high demand for natural gas by these producers but unfortunately it literally never happened since their sites were not located on natural gas route line. While the majority of them swapping to natural gas is absolutely seen as cost reduction. Including ongoing drawbacks from other fuel such as high level of emission from fuel oil and hazardous flame, moreover unpredictable price trend from Liquefied Petroleum Gas (LPG).Because of all these problems, Scan Inter foreseen an opportunity to create a system that can help deliver natural gas to those who are out of reach from the pipeline through our trailers. On the other hand, “this trailer is acting as a virtual pipe-line that draws from our mother station to customer sites.”
As said above, the outstanding quality of natural gas over other industrial fuels is its cleanliness after combustion when compared with coal, fuel oil, Liquefied Petroleum Gas (LPG), and Biomass. Moreover, natural gas is the lightest one in terms of weight which significant increases its safety index. When a leakage occurs natural gas will rapidly emanate into earth’s atmosphere, unlike Liquefied Petroleum Gas (LPG) that has higher Specific Gravity than the air. As a consequent, when there’s a leakage in LPG it will stay on the ground level and remain in the surrounding area, which can potentially be a cause of hazardous flame.
Natural gas holds its benefits in many aspects, one of the most important things is its price. Which saving of natural gas over fuel oil and Liquefied Petroleum Gas (LPG) is significant and can vary from hundreds of thousands to millions of baht per month approximately ($10,000 - $50,000 at 32.5 Baht/$). This number helps make factories meet their break-even point for their investment from 10-14 months (Based on construction cost on Basic Gas processing Facility) especially when swapping from Liquefied Petroleum Gas (LPG) fuel.
Besides, when price stability comes into mind, price on natural gas seems to be the most stable in terms of price structure when compare with price of fuel oil that solely relies on West Texas Intermediate (WTI)also Liquefied Petroleum Gas (LPG) that is dictated by Saudi Arabia contract price. The main factor that makes natural gas price more stable than the other is domestic production where 90%of natural gas in Thailand is domestically produced. In the near future, Liquefied Petroleum Gas (LPG) and fuel oil can potentially flip over to an upward trend due to the rise in oil price. Due to the rise in oil price natural gas can also be seen as the best solution for industrial input when production cost is taken into account.