markets. Furthermore, geopolitical conflicts like Russia-Ukraine and Israel-Hamas are prone to remain critical factors requiring close monitoring. If these situations escalate or spread to other countries, increasing volatility in energy prices and raw material costs tend to be noticed. Petrochemical industry also needs to adapt itself for facing upcoming trade restrictions on climate change that many countries have to set targets to reduce emissions of carbon dioxide and other greenhouse gases from energy and industrial sectors. The U.S. and European Union will begin imposing restrictions on the import of high-emission products including petrochemical products and others in the production chain. This requires operators in the petrochemical industry to adjust their operations to comply with such requirements. Investment Projects 1) Investment Project Progress The Ultra Clean Fuel Project (UCF): The objective of the UCF Project is to increase refinery plant’s efficiency and upgrade Diesel quality to meet the Euro 5 (Euro V) standard in accordance with the Ministry of Energy’s policy determining that starting from 1 January 2024, Diesel distribution must meet Euro 5 standard. Under the Euro 5 standard, the permitted sulfur level will decline to 10 parts per million (PPM) from 50 PPM under Euro 4. The project will increase the company’s competitiveness through the rising demand for Low Sulfur Diesel in domestic market and ASEAN Economic Community (AEC). The UCF project is able to reinforce competitiveness of the company involving Diesel as a main product; besides, the project is environmentally friendly and in line with the company’s Eco Factory policy. Currently, all equipment and machinery installation projects have been completed and it is under an inspection process. This project has been planned to commercial operate within 1Q24. Once the project is completed, the company’s capacity will be able to convert entire high-sulfur Diesel to low-sulfur Diesel following Euro 5 standards. 2) Investment Plan The Board of Directors has approved the company’s five-year (Year 2024-2028) investment plan in an aggregate amount of Baht 13,888 million. The details are as follows: The investment plan as mentioned above is an investment project with an operational plan. The goal is to encourage business growth. (หน่วย: ล้านบาท) Investment Projects 2024 2025 2026 2027 2028 Total (1) Ongoing Projects 4,626 - - 2,140 1,078 7,844 (2) BAU Operations 1,379 1,082 1,210 1,122 1,251 6,044 Total 6,005 1,082 1,210 3,262 2,329 13,888 (Unit: MB) 187 Management Discussion and Analysis (MD&A) 56-1 ONE REPORT 2023
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