IRPC complies with government policy by producing Euro 5 standard diesel fuel and commenced sales on December 25, 2023. Nature of Business IRPC Public Company Limited is the first fully integrated petrochemical operator in Southeast Asia. Located within the company’s own Industrial Zone in Rayong, its production structure comprises petroleum and petrochemical complexes, complete with utilities and infrastructure supporting the operations, including a deepsea port, oil depots, and power plants. Petroleum Business IRPC operates an oil refinery with a total production capacity of 215,000 barrels per day (bpd). Ranked third largest oil refinery in the country, IRPC produces a wide variety of petroleum products, consisting of liquefied petroleum gas (LPG), naphtha, gasoline, diesel and fuel oil. In addition, IRPC has a Lube Base Oil production plant with a capacity of 320,000 tons per year, and its asphalt plant has a total capacity of 600,000 tons per year as the country’s largest producer. It is also Thailand’s first asphalt plant to sell TIS-certified Bitumen Grade 40/50 in the domestic market. In addition, IRPC produces Rubber Process Oil whose quality meets internationally recognized standards. Diesel Quality Improvement Project The Thai government took a policy initiative to reduce air pollution and dust problem, particularly PM 2.5. As of January 1, 2024, Euro 5-compliant diesel (emission with sulfur content of less than 10 ppm) will become the new standard in Thailand. The EURO 5 standard refers to permissible limit on sulfur at 10 ppm in fuels, thereby reducing emissions of hydrocarbon gases and nitrogen oxide, among other pollutants. The standard is applicable to both petrol and diesel, which must limit sulfur content at not more than 10 ppm. In diesel, the standard also determines limit on Polycyclic Aromatic Hydrocarbon (PAHs) at 8% by weight, to lower soot from combustion and helps mitigate air pollution caused by PM2.5 pollutants. IRPC has started adjusting its production processes by implementing the Ultra Clean Fuel project (UCF). The objective is to increase refinery’s efficiency and upgrade diesel quality. The UCF project will enhance the company’s competitiveness as its refinery has until recently produced large quantities of high-sulfur diesel for export to some Asian markets. In the future, the highsulfur diesel market is expected to shrink and be confined to operators of oceangoing vessels and fishing trawlers with limited demand. Furthermore, these customers may opt for cheaper low-sulfur fuel oil instead. As a result, the company may face intense price competition going forward, resulting in low profitability. The project will enable IRPC to improve competitiveness and meet the increase in demand for diesel in the domestic market, as well as export to countries in regions that will be switching from Euro 4- to Euro 5-compliant diesel 64 Structure and Business Operations of IRPC IRPC Public Company Limited
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