TAE says government support for E20 will boost ethanol producers to full capacity

thunhoon.com··THUSIR·Read original
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Summary · why it matters

The Ministry of Energy is preparing to cope with rising oil prices due to the US-Iran conflict, and is promoting greater use of E20 among the public. Thai Agro Energy Public Company Limited (TAE), as an ethanol producer, stated that this policy will benefit the company and the entire supply chain economy. It is estimated that shifting the proportion of E20 as the main fuel will add up to 100 billion baht in value to GDP. Meanwhile, the country's total ethanol production capacity is 7 million liters per day, but actual demand is only 3.6-3.7 million liters per day, representing a capacity utilization rate of 50-60%. Plants can increase production immediately without investing in new machinery. On investment strategy, Mr. Sorachai Pittayapruek, Director of Analysis at Krungsri Securities Public Company Limited, recommends waiting to accumulate energy stocks when prices correct. PTTEP is supported by the war and monsoon season, while refinery groups are likely to see refining margins decline from their peak of over 20 dollars per barrel in the second quarter of 2026. In the petrochemical group, PTTGC is a standout stock due to its cost advantage, and SCC benefits from the Long Son project in Vietnam.

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