Energy Inspecting Why Under Expected CPO Supply Volume Response to EGAT’s Demand
B100 Export Plan Might Pulling CPO Supply.
22-5-2019–Today at Ministry of Energy Dr.Siri Chirapongphan Ministry of Energy disclosed that now Ministry of Energy is under inspecting that why there are not much CPO supply responding to the 2000,000 tons of CPO EGAT demanding to supply Bangpakong Power Plant.
According to EGAT’s data, there were in total 57,000 tons of CPO has been offered to sell EGAT to supply for Bangpakong power plant palm oil absorbing measure, but there were only 45,300 tons of CPO qualified for EGAT to purchase to have it contained into Bangpakong Power Plant CPO-Natural Gas Mixed Formula supply, while Energy Ministry assigned EGAT to purchase 100,000 tons in the first lot of total 200,000 tons in total of the measures.
“Now Energy Ministry is under inspecting why there were too small amount of CPO supply response to the CPO demand driven measure to have EGAT purchase 100,000 tons with in May and to purchase the next 200,000 tons in the coming June. The under expectation amount of CPO supply response to EGAT power plant CPO absorbing measure could reflexing that there are no more CPO stock available.”
“If there are 100,000-200,000 tons of CPO supply response to EGAT existing purchasing demand and it was plan, the price of fresh oil palm fruit must be raised to 2.85 Baht /Kg not 2.20-2.50 baht/kg as the present.” said Minister of Energy.
There are press invitation from GGC (an affiliated of PTT group) that GGC will hold a press conference on the 2nd June or the 4th June 2019 to unveiled about another B100 export lot which the ship will be arrived at Sattaheep sea port on the 2nd June to, 2019 to pick up GGC’s B100 from its tank terminal to export to China. This lot would be the second B100 export lot next to the first B100 lot export to Europe at about 2,500 tons on May 4, 2019.
The total B100 export plan of GGC this year is to export 12,500 tons of within 2019. The second lot of B100 GGC plan to export at the beginning of next month (Could be on June, 2nd or 4th ), this shipment of CPO will be shipped to China, the volume is remain not reveiled.
One of Energy Ministry policy is to promote B100 production of PTT to raise CPO demand by B100 production which is
CPO-mixed formula. The policy is to help raising the price of oil palm fresh fruit to support oil palm farmer better living.
It could be possible that the reason why CPO supply was not response to EGAT power plant’s demand reflexing by the sell offering volume was less than expected might be causing by the other demand pulling by B100 production export trend which has demand from over sea¸ according to the situation.
According to Minister of Energy Dr.Siri, Ministry of Industry is now waiting for the oil palm and CPO stock inspecting result from Ministry of Commerce and Ministry of Agriculture and cooperative.
“Don’t Be Panic On Energy Shortage, Reserve Enough for 45 Days for Crisis ” Energy Minister.
There will be the meeting on National Energy Reserve meeting (May 23) concerning the higher oil price due to the uncertainty tense situation in The Middle East causing the global oil price to reach about 72 USD/Barrel. Any way Minister Siri said Thai people have to be panic by the situation as The global oil price has no tendency to be raised mush by this year, as the winter in the western countries was gone, no need energy for warming, while global economic in many major countries are all slow down and causing global oil demand decreased. Then it has no strong factor to push up global oil price.
By the way if there is the factor in Hormuz Strait, Thailand will have the reserve energy supply enough for 45 days enough to handle the situation in time. He remind Thai people just follow up the situation but don’t be panic, said Energy Minister Siri Chirapongphan.
