UAC engaged in business of import and distribution of chemicals and equipment used in various industries, i.e. off- shore natural gas exploration and production, gas separation plant, oil refinery, upstream petrochemicals, engine oil lubricant manufacturing plant, polymer and plastic manufacturing plant, chemical industrial plant, power and utilities plant.
Later, the company has expanded its business by investing in the projects related to renewable and alternative energy, for instance the production of compressed bio-methane gas (CBG) and the biodiesel plant through the associated company (Bangchak Biofuel Co.,Ltd.) which is joint venture with The Bangchak Petreleum Public Company Limited (BCP) including the petroleum product plant project in Sukhothai province, the biogas power plant by using energy crops (Napier gas) as fuel including the study on the project development to invest in utilities business concerning tap water system of the subsidiary company. For more than 20 years of experiences, the company’s business expanded continually by focusing on projects related to renewable and alternatively energy.
Products and Services
The products and services supplied by the company can be classified into 4 groups according to nature of business and services of the customers as follows:
- Products in Energy and Petroleum Business Group, such as :
- Off-shore refinery and upstream petrochemicals
- Liquid chemicals
- Emission & waste management
- Products in Industrial Business Group, such as:
- Chemical products
- Power and Utility
- Other Products, i.e. crude glycerin and other export products
- Provision of services, such as consultancy and coordination services for design of manufacturing process, refineries, petrochemical industrial plants and other industries.
Warehouse and transportation of products to customers
The Company has 2 warehouses with details as follows:
- Leased warehouse located at No. 999 Moo 4, Soi thetsaban Bang Pu 99 (Sermmit), Sukhumvit Road, Bangpoo Subdistrict, Muang Samut Prakan District, Samut Prakan Province. It has been rented from a juristic person who is related to the Company with lease team of 1 year from January 1, 2017 - December 31, 2017. It is a warehouse building with utilization areas of 2,200 square meters on areas of 2 rais to store stocks of products and chemicals. Packages of chemicals stored in the Company have various sizes and all of them have Certificate of Acceptance (COA) from the manufacturers and are pending for delivery to the customers.
- Leased warehouse located at No. 613/13, Songkhla-Chana Road, Moo 2, Pawong Sub-district, Muang District, Songkhla Province. It comprises of 1 warehouse building with approximately 300 square meters. It has been rented from the third party with lease team of 3 years, from March 1, 2017 - February 28, 2020 to store chemical stock for customers in off-shore exploration group and natural gas production business group in the Gulf of Thailand. However, the Company has terminated this warehouse lease contract on November 23, 2017.
The Company supplies products from such warehouses to its customers by using various sizes of trucks hired from the third party transportation operators which have been registered to certify safety operation under the standards of Department of Industrial Works. For safety of the warehouse, the Company has employed security guards to station at the warehouse 24 hours a day. Hazardous chemicals shall be divided by chemical type and stored as per prescribed by laws with the hazardous control officer in the warehouse. The Company shall not allow any third party or any person even its employees whose duties are not related to such warehouse to enter into the warehouse without permission. In addition, the Company has executed an insurance policy to cover goods stored in the warehouse in case of accident during storage period or from operations as well as the insurance policy for goods during transportation to the customers as well.
Investment in renewable and alternative energy industry
1. Petroleum Production Plant (PPP)
The Company invested in the Petroleum Production Plant (PPP) in Sukhothai Province. The production process uses residue gas which is by-product from oil drilling from Burapa-A production platform of Siam Moeko Co., Ltd. (which is not the connected person of the Company) that obtains the petroleum concession in Burapa source, Kongkrailat District, Sukhothai Province from the Ministry of Energy to transform into various petroleum products which can be used as fuels, such as
- Compressed Natural Gas (CNG)
- Liquefied Petroleum Gas (LPG)
- Natural Gasoline (NGL)
- Fuel Gas
Its designed production capacity is approximately 19,681 tons per year, comprising CNG for 12,036 tons per year, LPG for 6,300 tons per year and NGL for 1,345 tons per year. Investment for this project is approximately 620 million Baht. The commissioning test has been commenced since January 2014 and sales of LPG and NGL had been started since May 2014, while sales of CNG had been started on November 2014.
In 2016, the Company has invested Baht 110 million in construction project of 7 KM natural gas pipeline between Petroleum Production Project (PPP) and Sao Thian-A power plant to receive associated gas, which is by-product from manufacturing of petroleum from Sao Thian-A platform of PTT Exploration and Production Public Co., Ltd. (which is not the Company’s connected person) at Kongkrailat District, Sukhothai Province to increase the generating capacity. The construction has been commenced on February 2, 2016 and completed on June 30, 2016. The commissioning test has been performed since July 2016 and commercial operation date has commenced since August 2016.
2. Generation and distribution of electricity from solar power
UAC Energy and SERP, the Company’s subsidiaries, invested in 2 construction projects of solar power from Solar PV Rooftop with Metropolitan Electricity Authority and Provincial Electricity Authority and both projects has commenced commercial operation with total generating capacity of 2 MW and have recognized revenue since the 3rd quarter of 2014.
3. Power Generation from Fuel Gas and Associated Gas
On June 1, 2015, the Board of Directors of UAC Global Public Co., Ltd. has approved UAC Energy Co., Ltd. (its Subsidiary) to acquire 2 power plants, Sao Thian-A power plant and Pra Du Thao power plant, from Ratchburi Energy Co., Ltd. at total value of Baht 205 million. Sao Thian-A power plant is located at Moo 11, Nongsaotien Tai Village, Krainai Sub-district, Kongkrailat District, Sukhothai Province while Pra Du Thao power plant is located at Moo. 11, Thammaikrai Village, Kong Sub-district, Kongkrailat District, Sukhothai Province. Business transfer of such 2 power plants have been completed on April 1, 2016, and UAC Energy Co., Ltd. can recognize revenue from electricity supply immediately from the business transfer date, so it can generate long-term revenues to the Company.
Sao Thian-A power plant has generating capacity of 3.9 MW and its uses fuel gas, by-product from gas separation process of Petroleum Production Project (PPP) and associated gas of Sao Thian-A crude oil production well of PTT Exploration and Production Public Co., Ltd, which has been granted concession from Energy Ministry in Sao Thian-A Source, Kongkrailat District, Sukhothai Province, as its fuel to produce electricity. Such electricity will be supplied to distribution and transmission system of Provincial Electricity Authority with total generating capacity of approximately 10,800 MWh per year.
Pra Du Thao-A power plant has generating capacity of 3.0 MW and its uses associated gas, by-product from Pra Du Thao-A crude oil production well of PTT Exploration and Production Public Co., Ltd, which has been granted concession from Energy Ministry in Pra Du Thao-A Source, Kongkrailat District, Sukhothai Province, as its fuel to produce electricity. Such electricity is supplied to distribution and transmission system of Electricity Generating Authority of Thailand (EGAT) and Provincial Electricity Authority (PEA) with total generating capacity of approximately 5,100 MWh per year.
4. Electricity generation from biogas by using energy crops (Napier grass)
The Company invested in one 1.5 MWp biogas power plant which uses energy crop (Napier grass) as main raw material in Mae Tang District, Chiang Mai Province which commenced its commercial operation on December 2015. In addition, UAC TPT also invested in 2 projects in Phuphaman District, Khon Kaen Province where construction is nearly completed. Generating capacity of each project is 1.5 MWp. It is now under requesting for electricity selling permit from Provincial Electricity Authority (PEA), so total generating capacity of these plants will be 4.5 MWp, however, it will depend on policy and consideration of the public sector agencies.
5. Compressed Bio-methane Gas (CBG) Project
CBG is one of renewable energy project that can support usage of renewable energy pursuant to the main policy of the Ministry of Energy. This project is located in Mae Tang District, Chiangmai Province on the leased land within the pig farm of Mongkol and Sons Farm Co., Ltd. (which is not the connected person of the Company) covering areas of 11 rai 1 ngan. CBG produced from waste from such pig farm shall be used as fuel for vehicle fuel to replace NGV.
The construction of this project has been completed and it can produce CBG which has qualification equivalent to NGV for vehicle pursuant to the notification of the Department of Energy Business. It has been designed to have production capacity of approximately 6 tons per day or approximately 2,160 tons per year.
In addition, the project has been granted promotional privileges from the Board of Investment on March 16, 2010. Privileges granted are exemption of corporate income tax on net profit for a period of 8 years commencing as from the date of earning operating income and a 50% reduction of corporate income tax of net profit derived from the promoted operations for a period of 5 years after the tax-exemption period ends. The Company realized revenues from sales of CBG at its plant in Mae Tang Plant, Chiangmai Province since August 2013. This project has also been certified on ISO 9001: 2008 Quality Management Systems from SGS (Thailand) Co., Ltd. on May 2015 and also ISO 9001:2015 Quality Management Systems from SGS (Thailand) Co., Ltd. on December 2016.
As petroleum prices had reduced continually since 2015 and the production cost of CBG was higher than retail price, so PTT has canceled the purchase of CBG from the Company since January 26, 2017.
6. Production and distribution of biodiesel
The Company has joint investment in Bangchak Biofuel Co., Ltd. (”BBF”) with BBGI Co., Ltd., a subsidiary of Bangchak Corporation Plc. (“BCP”), at shareholding ratio of 30% and 70%, respectively. BBF is located in Phra Nakorn Sri Ayudhya Province and engages in business of production and supply of biodiesel which is liquefied fuel used as substitute mixture with some part of diesel oil obtained from petroleum process in order to produce various types of diesel oil such as biodiesel B5. Initially, the production capacity of biodiesel is 360,000 liters per day, later in 2014, BBF has invested in construction of the 2nd factory located in the same area of the 1st factory to increase production capacity by 450,000 liters per day. The construction has been completed and the revenue has been recognized since the 3rd quarter of 2016, so total production capacity is 810,000 liters per day.