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Suvarnabhumi » Energy consumption to jump after Suvarnabhumi Airport opens

Sunday, July 20th, 2008

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Oil companies expect demand for jet fuel to increase after Bangkok’s new international airport opens on September 28.

Demand forecasts are based on expectations that the number of flights going through Bangkok will increase. Suvarnabhumi Airport has higher plane, passenger and cargo capacity than current facilities at Bangkok International Airport (Don Muang), which has been Thailand’s primary aviation hub since the 1920s.

“The opening of Suvarnabhumi Airport will help the oil industry, because consumption will increase by 10 to 15 percent,” said Manoon Siriwan, Bangchak Petroleum Plc. deputy managing director.

To meet growing demand, Bangchak plans to be more active in fuel auctioning at the new airport. Whenever an airline requires more fuel, an auction is conducted in which Bangchak, PTT and other major oil refiners bid on short term supply contracts.

Thai Airways International (THAI) is, currently, Bangchak’s sole client.

“We are now studying all details about this business venture, and hope to have more concrete plans by next year,” said Manoon.

Jarern Pavarojkit, Bangkok Aviation Fuel Services Plc. (BAFS) deputy managing director, also expects to see fuel demand rise once Suvarnabhumi Airport opens.

“Compared to Don Muang, Suvarnabhumi will consume five percent more gasoline. At present, Don Muang consumes 11.5 million litres per day or 4.2 billion litres per year,” said Jarern.

BAFS began storing fuel at Suvarnabhumi in June and, according to Jarern, is ready to provide service when the airport opens next week.

BAFS will facilitate 80 per cent of Suvarnabhumi Airport’s fuel storage and transfer services. Aircraft Service International Group will manage the remaining 20 per cent. (TNA)

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