OR launches EV service expansion with billion-baht investment amidst oil volatility

OR accelerates EV services amid oil price volatility, with a 58 billion baht investment by 2030 and the acquisition of a stake in a pipeline network.

Strategic summary

OR, Thailand's energy giant, is investing heavily in electric mobility services to expand its EV portfolio in the face of oil price volatility.

Market context

CEO ML Peekthong Thongyai stated that it is not possible to accurately predict how many people will migrate to EVs at this moment, as the market remains sensitive to oil fluctuations.

Geopolitical and economic impact

The move occurs in a context of tensions that are driving up oil prices, while the Oil Fuel Fund nears depletion, leading the government to adjust domestic fuel prices.

Key price and subsidy data

Diesel reached 40.74 baht per liter on March 31, according to company information. Subsidies from the fund may increase and the government may need loans to support it, which could stimulate more EV buyers.

Investment plan and priorities

OR has set a budget of 58 billion baht for the 2026-2030 period, with up to 38 billion allocated to oil and EV operations, focusing on infrastructure, oil transport, and EV charging.

Projections for charging service

The number of users of its charging services is expected to rise to 7,000 by 2030, with an average of seven daily hours of use, up from 3,000 users in 2025 with six daily hours. In 2023, there were 1,600 users with four daily hours.

EV innovation and growth

ML Peekthong stated that EV charging services are growing rapidly, with electricity becoming a key fuel for mobility.

Strategic acquisition and environmental impact

Additionally, OR has decided to acquire shares of the Thai Pipeline Network, which operates a pipeline network between Saraburi and the Northeast. Modulus Venture, an OR unit, will come to hold 55.41% of the Thai Pipeline Network, with the Electric Generating Public Company Limited (EGCO) holding 44.59%.

Environmental benefits

Pipeline transport, connecting Saraburi to Khon Kaen over approximately 300 kilometers, can significantly reduce CO2 emissions from tanker trucks, supporting Thailand's campaign against global warming.

Conclusion

The strategies reflect an integrated vision: expanding EVs while strengthening pipeline infrastructure and energy transport, seeking greater resilience in the face of global price volatility.

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