PTT OR Overhauls Oil Network, Targets 20% Cost Reduction
PTT Oil and Retail (OR) is restructuring its Northeastern oil logistics by shifting from truck to pipeline transport and consolidating depots, targeting a 20% operating cost reduction. The company has begun exporting oil to Laos via its Thai Pipeline Network while simultaneously reviewing its struggling Cambodia operations, where fuel sales have fallen 70% and station count has halved.
OR is restructuring its Northeastern oil depot network, aiming to cut costs by over 20% while expanding oil exports to Laos to navigate volatile fuel markets. Nisit Phongwuthipraphan, Executive Vice President of Corporate Strategy at PTT Oil and Retail Business (OR), revealed the company is accelerating cost and business restructuring to manage energy market fluctuations, using logistics systems and pipeline infrastructure as a long-term cost-reduction mechanism. OR holds a 55.4% stake in Thai Pipeline Network (TPN) alongside EGCO's 44.6%, with a 2.2 billion baht investment in the 342-kilometer pipeline system capable of transporting over 5 billion liters annually. Shifting from truck to pipeline transport, combined with depot network optimization, is expected to reduce operating costs by more than 20% in the Northeast. The company is eliminating depot redundancy by designating TPN and Ubon Ratchathani depots as primary strategic hubs, with TPN supporting oil exports to Laos, where the first shipment has already been dispatched. Meanwhile, OR is monitoring government oil pricing policies and negotiating with refineries to adjust costs appropriately, as Q4 2026 fuel demand is expected to recover with the tourism season. Regarding Cambodia, the company is evaluating whether to proceed or withdraw investment after fuel sales through PTT Stations dropped approximately 70%, mirroring declines at Cafe Amazon outlets, with service stations falling from around 200 to fewer than 100. OR will prioritize cost-control measures to prevent continued losses.
