NGVs in Thailand

15th September 2006

NATIONAL ENERGY POLICY

To reduce the imported oil demand in transportation sector by 25% in 2009 by :
Promote the substitution fuels which can be produced in Thailand

- Gasohol
- NGV

: to replace Gasoline 95 by 2009

: to replace Gasoline & Diesel 20% by 2020

- Bio-diesel : to replace Diesel 8.5 million litre/day by 2012

To improve National logistics system - Increase the mass transportation system - Improve Goods logistics system - Increase Pipeline, Rail and Water transport

NGV the fuel of choice

Indigenous supply with abundant reserve for NGV Safe and clean fuel for the environment Benefit to user because the lowest price Natural gas infrastructure are well established Onshore gas field can serve the North and North

eastern part

NG Infrastructure Well Established and Growing

3rd pipeline network will be commissioning by early 2006 Total offshore capacity will be increased to 4,000 MMSCFD Pipeline from Myanmar has capacity of 1,200 MMSCFD TTM pipeline with 1,020 MMSCFD capacity

Onshore gas field in the North and North-eastern

Import LNG to supply Gas in Long Term

LNG Receiving Terminal Project

5-10 Million Tons, Import in 2011 Area : Connect from Rayong Coast with PTT Pipelines

Natural GasAlternative Fuel in Transportation Sector

Increase Gas Ratio in Transportation Sector Increase NGV Ratio in Transportation Sector
Goal in 2010 : 500,000 NG Vehicles 740 Stations
Stack : #of stations
4.6% CAGR

1,000 900 800 700 600 500 400 300 200 100

Unit : KBD Crude Oil Equivalent

Line : # of vehicles (000)

880
6% 16% 1% 20% 6% 31%

800 600 400 200

200
#of vehicles

500,000 500

FO LPG/
450
6% 15% 26% 3% 50%

740

400 300

Jet Ethanol Gasoline Palm Diesel Diesel

51,000
# of stations

200 100 0

0.4%

NGV

20%

0 2005

2007 2009

2011 2013

2015

2017 2019

2005

2006

2007

2008

2009

2010

In 2020, Replace Gasoline & Diesel in Transportation Sector by 20% of NGV 9,000 NG Vehicles @ 2005 500,000 @ 2010 60 Stations @ 2005 740 @ 2010

NGV EXPANSION TARGET

Goal : 500,000 vehicles and 740 stations @2010
Station
800 600 400

Oil replacement 20% @2020

Vehicles (x1000)
500 400 400 300 300 200 200

MMsCFD
NGV

( MML/Day) 772
15.1

500

NO. OF NGV
300 171
420

396
740 620

Diesel Gasoline 110 7

0.0 0.2

365
275 190
3.8 5.6 1.9 2.5 7.6

6.7

200 0

51 10.3
60 '05 200

270

No. of station
'08 '09 '10

100 100 0

45
0.9 0.3

'06

'07

2.2 0.8

1.4

16 14 12 10 8 6 4 2 0

'05 '06 '07 '08 '09 '10 '20

Replace 20% of Gasoline & Diesel in Transportation

No. of station 740 To serve NGV 500,000 units

The benefits of NGV

NGV save Nations Energy Cost

Benefit to the nation (2006 2010)
NGV Service Station Investment Vehicle Conversion Cost Reduce Gasoline/Diesel Usage Increase NGV usage 1,118 Million US$ 1,172 Million US$ ~ 10 M.Litre/Day ~ 365 MMSCFD

Reduce Imported Crude

Remark: - Number of vehicles 500,000 Units - Petroleum Price @ Dubai 60$ - Fx 39 /US$

1,878 Million US$/Yr.

740 NGV Service Stations

Fuel Price Comparison (As of 12th Sept 2006)

US$
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

Retail Price Comparison

0.69
US$/ Litre

US$/MM BTU
25

Heat Basis Comparison

20.5 18.5

0.66

0.68
20

21

US$/ Litre

US$/ Litre

15

+71%

+70%

+68%

0.24
US$/ Litre

0.22
US$/ Kg.

10 5 0

+33%

ULG95

ULR91

Diesel

LPG

NGV

ULG95

ULR91

Diesel

LPG

NGV

Remark

: Heat of ULG 95 31,754 BTU/L, ULR 91 32,133 BTU/L, Diesel 36,722 BTU/L, LPG 26,595 BTU/L, and NGV 35,947 BTU/kg (1,000 BTU/SCF) : NGV Price = 8.50 Baht / Kg.

Fuel
Gasoline 95 Gasoline 91 Diesel LPG NGV

Fuel Price (US$/Litre)

0.69 0.66 0.68 0.24 (0.43 US$/Kg) 0.22 US$/Kg

Fuel consumption (Km./Litre)

10 10 12* 8.6** 13.0**

Fuel Cost (US$/Km.)

0.069 0.066 0.056 0.028 0.017
Remark: * Diesel Engine 2,500 cc ** Data from PTTs Vehicles usage (Toyota Altis 1,600 cc)

Benefit to NGV Users

Reduce Fuel Expenditure 1,013 Million US$/Yr.
Vehicle Type Conversion Cost (US$) Distance
(Km./Day)

Gasoline /Diesel Replacement Volume (Litre/Yr.)

Payback Period (Month)

Fuel Cost Saving/Unit

NGV Users (US$/Yr.) The Nation (US$/Yr.)

Gasoline Engine

Private Car - Bi Fuel

Taxi Diesel Engine Van/Pick Up - DDF - Bi Fuel Truck - DDF - Dedicated - Repowering Bus - DDF - Dedicated - Bi Fuel

1,280
1,280

100
400

2,900
13,900

12
3

1,280
6,100

590
2,845

1,155 1,540 5,130 15,385 38,460 4,615 12,820

250 250 400 400 400 250 250

3,700 9,100 26,000 81,100 81,100 14,600 45,600

10 5 6 6 14 10 9

1,410 3,795 9,640 30,130 33,665 5,718 17,845

640 1,925 4,385 13,665 17,155 2,745 8,565

Remark: Retail Price as of 12th Sept. 2006 Gasoline 91 0.66 US$/Litre , Diesel 0.68 US$/Litre, NGV 0.22 US$/Kg. NGV Replacement Ratio ; Bi Fuel 90%, DDF 35-40%, Dediceted / Repowering 100%

NGV the Green Energy

Gasoline Engine
g/km
1.2 1 0.8 0.6 0.4 0.2 0

Diesel Engine
g/km
30 25 20 15 10 5 0

CO

Nox Gasoline

THC NGV

PM

CO

Nox Diesel

THC NGV

PM

Source : IANGV Emission Report,31 Mar. 2000

Source : NGV96 CONFERENCE&EXHIBITION, Sep.1996-4 Oct.1996, Malaysia

30

Air Pollution Reduce from using NGV

Year
# of NGV Vehicles Reduce NOx (Ton) Reduce THC (Ton) Reduce CO (Ton) Reduce PM (Ton)
(Accumulated)

2006
51,000 8,793 -661 8,242 418

2007
170,870 77,820 1,418 50,043 4,139

2008
300,370 99,239 712 65,022 5,341

2009
395,570 126,137 1,284 80,919 6,838

2010
500,220 155,260 1,849 98,039 8,471

Source : PTT

Healthy Welfare Expenditure reduce from using NGV

Year
# of NGV Vehicles
(Accumulated)

2006
51,000

2007
170,870

2008
300,370

2009
395,570

2010
500,220

PM10 in the air reduction (Micro g./m3)

Medical Expenditure from PM10 reduce (Million US$)

0.01

0.18

0.23

0.30

0.37

176

1,800

2,300

2,900

3,600

Source : PTT

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Seite 15

Government Policy to

Support NGV Expansion

Some Government incentives implemented to promote NGV

Duty
Reduce import duty for conversion kit from 1-3% to 0% (until 2007) Exempt import duty for CNG cylinder and conversion kit

Reduce import duty for CNG Refueling Facilities 1% (Except Compressor 3%)
Exempt import duty for Dedicated NGV engine

Tax
Reduce the excise tax for OEM passenger car and mini bus not over 3000 cc. engine from 30% to 20%

Reduce excise tax for NGV retrofit outside manufacturing plant (manufacturer warrantee required) to 22% but not more than 1,280 US$/vehicle

Some Government incentives implemented to promote NGV (cont.)

BOI
Manufacturing of NGV engines, parts and conversion kit will receive special privilege from BOI including exemption of import duty for the machinery

Others
Approved budget for BMTA to purchase 2,000 new NGV buses

Converted old BMTAs buses to be NGV

Mandatory government vehicles converted to NGV

Additional measures and incentives being considered by Government

Duty
Exempt import duty for Imported Heavy vehicles (Trucks &Buses) both CBU&CKD

Tax
Reduce road tax for NGV vehicles 50%

Others
Mandatory new Taxi and TukTuk must be NGV

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Seite 19

PTTs Roll in NGV Expansion

NGV Vehicles Expansion Target

Types
Gasoline Engine Taxi / Tuk-tuk / Passenger Car / Gov. Diesel Engine BMTA Bus / Transport Bus Truck Trailer/ Truck Pick-up / Van Total of Diesel Engine Total 4.07 2.39 0.78 7.23 8.4 25 58.6 92 10.3 31.1 120 161 12.5 39.1 165 217 14.1 48.1 219 281 43.96 79 139 179 219 2006 New Roadmap 2007 2008 2009 2010 Accumulative Number (000/ Year)

51

171

300

396

500

51,000 Units in 2006

Expansion of NGV Station

Regions Present 2006 Q4 2007 2008 2009 2010

Great Bangkok Central/ East/ West North North East South Total (Accumulation)

56 14 70

131 44 9 7 9 200

197 64 17 24 18 320

247 74 45 58 26 450

270 80 87 104 79 620

325 90 112 114 99 740

200 Stations in 2006

Expand NGV Service Stations in 2006 200 Stations

Types of CNG Refueling Station

1. Conventional Station

High Medium Low 1. PIPELINE 2. COMPRESSOR 3. GAS STORAGE 4. DISPENSER 5. NGV VEHICLE

Gas is compressed in Gas from the distribution pipeline 3-4 stages to a maximum pressure of 3600 PSIG

Compressed gas is stored in three banks(high,medium and low) at maximum pressure 3600 PSIG Typical total volume for a storage is 1300 sm3

Gas stored in the Dual hose dispenser with filling rate less than vehicle at 3000 PSIG three minutes per vehicle

Facts and figures provided are typical and for information only

Types of CNG Refueling Station (Cont.)

2. Mother Station
High Medium Low

1. PIPELINE

2. METERING STATION

Gas from the distribution pipeline

Gas is filtered and metered and regulated to 145 PSIG

Gas is compressed in 3-4 stages to a maximum pressure of 3600 PSIG Flow rate capacity for a compressor is 500 sm3/hr
High Medium Low

3. COMPRESSOR

7. NGV TRAILER

Compressed gas is transferred in to the NGV trailer 3600 PSIG to be transported to the daughter station

6. NGV VEHICLE

5. DISPENSER

4. GAS STORAGE

Gas stored in the vehicle at 3000 PSIG

Dual hose dispenser with filling rate less than three minutes per vehicle

Compressed gas is stored in three banks(high,medium and low) at maximum pressure 3600 PSIG

Facts and figures provided are typical and for information only

Types of CNG Refueling Station (Cont.)

3. Daughter Station

2. REGULATING

3. COMPRESSOR

Compressed gas transported from the mother station at 3600 PSIG

1. NGV TRAILER

Gas is regulated in 3 stages to 200 PSIG

Gas is compressed in 3-4 stages to a maximum pressure of 3600 PSIG

High Medium
6. NGV VEHICLE 5. DISPENSER 4. GAS STORAGE

Gas stored in the vehicle at 3000 PSIG

Dual hose dispenser with filling rate less than three minutes per vehicle

Compressed gas is stored in two banks(high and medium) at maximum pressure 3600 PSIG

Facts and figures provided are typical and for information only

NGV Refueling Station

Daughter Station, Ekachai Road

NGV Refueling Facilities

Daughter Station, Khampangphet Road

Mobile Gas Storage Unit

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Seite 29

NGV Marketing Program

Evaluation of potential customers

CRITERIA Customer group Gasoline Passenger car Taxi Tuk Tuk
Company Fleet Market Attractiveness (X1000) Finacning capability 20% Technology 30% Mileages 30% Price Sensitivity 20% Conclusions

2,600 69 24 * ~10 6 3,385 75 686 * 7

5 2 2 4 3 2 3 3 4 3 1/4

5 5 5 5 5 2 2 2 3 2 4

1 5 3 4 2 4 3 3 5 3 5

2 5 5 3 2 5 3 5 5 3 3

Government car Diesel Van Pick up Buses Truck/Tractor Company fleet BMTA
Notes: Rating range 1 5

(5 = max, 1 = min)

Marketing Program for Taxies : Kit to Kit Project

LPG / Gasoline Taxis to NGV Taxi
Goal: Convert 30,000 Taxis within 1 Year (Start from 8 May 2006)
Free Conversion for both LPG and Gasoline powered Taxis to CNG taxis (~1,000 US$/Unit) 1,042 Taxis were converted (LPG Taxies 340 , Gasoline Taxies 702)

Marketing Program for Passenger Car : NGV for Thais

Passenger Car : Private Car / Van / Pick Up
Goal: Convert Passenger Cars to NGV project end 31th Aug. 06
PTT Supported NGV Conversion Cost 256 US$/Unit 11,144 of passenger cars applied to converted 8,459 were converted

Marketing Program for Truck : NGV for Heavy duty vehicles

Heavy duty vehicles : Truck / Truck Tractor / Bus
Pilot Project: to support the conversion cost for each fleet operator
105 Fleet operators participated with 215 trucks 155 vehicles were converted in this project Rolled out : Total number of Converted Heavy Duty Vehicles 627 Units

Other Supports
Soft Loan for NGV Users : 185 Million $
4% for fleet owners / companies 5% for personal loan Interest rate MOR+2%

(10 yrs. project) PTT Cooperates with 9 major banks to lend soft loan to NGV users PTT lends the loan directly to NGV users (Fleet Owners only) the Loan will be provided for; - Engine Conversion - Engine Retrofitting - Engine Re-powering ( Replace OEM CNG Engine to Existing Engine) - Buy New CNG Powered Vehicles, only Add Cost from Original Vehicle cost

PTT Price CNG at 8.5 Baht/kg (0.22$/kg) Until the end of 2007 From Jan 1,2008 CNG Price will be gradually increased but not higher than 50% of Diesel

Guarantee Low CNG Price :

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Seite 35

NGV Pilot Projects

Pilot Project : NGV in Locomotive

Mother Station @ Nimithmai BKK

NGV Trailer

Locomotive Dual Fuel Engine

Locomotive Cummins KTA50L , was converted to DDF

Project Duration : September 2004 February 2006 Testing results - Approximately replace diesel 30 % - 35% - Energy Cost Saving 20%

Pilot Project : NGV in Fishing Boats

2 Fishing Boats, Gardner engine 150 HP and Hino EK100,
330 HP, are being converted to DDF Project Duration : June 2005 February 2006

Testing results 1. Medium Fishing Boats Engine HINO EK100 330 HP - Replace Diesel 50% - Energy Cost Saving 27% 2. Small Fishing Boats Engine Gardner 150 HP - Replace Diesel 50% - Energy Cost Saving 21%

Pilot Project : LNG Plant and LCNG Service Station

LNG Plant From Nongtoom Oil Field (City: Sukhothai)
LNG/LCNG Service Station at Kamphaeng Phet Project Duration : June 2005 December 2015

Flare Gas
1.5 MMSCFD

GSP Nongtoom Oil Field Sukothai

LNG Plant Unit

Expected to serve Diesel replacement

52 trucks 27,800 Litre/ Day

LNG 18 - 20Ton/Day

Crude Oil LCNG Station

LCNG Station Nongtoom Oil Field

Trailer 40 Units

- Replace Diesel 20,800 Litres/day

Small LNG Plant Project : Sukhothai , Phuhom , Kanom

Gas Field Small LNG Plant
Gas Liquefaction Plant

Capacity 5 MMSCFD

(~100 tons/day) 2,740 units

LNG

storage

LCNG Station

LCNG Station

5 stations 140,000 Lit/ Day

Serve Heavy Duty Vehicles Diesel Replacement

Sales Gas 5 mmscfd Replace LPG in industry sector

Mother Station @ BKK

CNG
High Medium Low

5 CNG = 1 LNG Rayong

LNG

4 Ton

18 Ton

NGV Current Status (Sept 11th , 2006)

No. of NGV Vehicles
Gasoline Engine (NGV Taxi 7,118 Units) Diesel Engine

19,695 Units
17,781 Units

1,914 Units

No. of NGV Stations

Great Bangkok Central East

67

Units

52 Units 9 Units 6 Units

NGV Sale Volume 10 MMSCFD (August 2006) NGV Installers 69 companies

Thank You