The acquisition of a 49% share in Susco Dealers Ltd (SDA), the operator of Susco petrol stations, by Sinopec (Hong Kong) Ltd, a subsidiary of Sinopec, China’s oil and gas conglomerate, could open doors to the Beijing-based giant expanding in Thailand beyond its stable oil business, a source in the energy industry has speculated.
After the US$34 million acquisition in December 2022, SDA changed its name to Sinopec Susco Ltd in August the following year.
The first petrol station under the Sinopec Susco brand was launched in Bangkok’s Ratchada area in October 2023. After that, the company gradually changed signboards of 25 existing Susco stations to Sinopec Susco, as well as unveiling a plan to increase the number of branches to 100 stations by 2030.
The source said Sinopec could target going beyond expanding petrol stations, as SDA was also engaging in the jet-fuel business.
It is predicted that jet fuel will see soaring demand in Thailand, especially from Chinese and Hong Kong airlines, after the permanent visa waiver between Thailand and China was kicked off in March in a move to boost mutual tourism, the source said.
The source added that operators of petrol stations have been trying to branch out to non-oil businesses in response to the declining trend of fossil-fuel vehicles, and Sinopec Susco is no exception.
By joining hands with Rêver Automotive, authorised dealer of BYD electric vehicles (EVs) in Thailand, the company established a subsidiary called Susco Beyond to operate the first one-stop EV showroom for BYD in Ayutthaya’s Pratunam Phra-in area.
Boasting that the showroom is the first of its kind that provides all kinds of services, complete with a paint and body shop, Susco Beyond promised that more branches will come to Ayutthaya, Ang Thong and Sing Buri provinces.
It is an interesting development that an oil company has branched out to the increasingly popular EV market to secure a foothold in energy and related industries, said the source.
Sinopec Group, or China Petroleum & Chemical Corporation, operates more than 30,000 petrol stations in mainland China and Hong Kong, as well as more than 27,000 branches of Easy Joy convenience stores, China’s largest retail chain.
The group posted total revenues in 2023 at 3.21 trillion yuan (16.39 trillion baht) and profits of 58.3 billion yuan (297 billion baht).
In Thailand, Sinopec Group has invested in several gas-pipeline construction projects and operated a consulting company for oil-refinery and engineering businesses.