E10 cancellation plan to be reconsidered due to low ethanol supply

E10 cancellation plan to be reconsidered due to low ethanol supply

BANGKOK, 8 December 2016 (NNT) – The Department of Energy Business (DOEB) has revealed that it might be necessary to extend the distribution of gasohol E10 through next year following a slowdown in ethanol production. 

DOEB Director-General Witoon Kulcharoenwirat reported that, over the past 2-3 months, three ethanol producers have terminated operations at five factories, causing a loss of about 1 million liters in ethanol supply each day. Furthermore, he estimated that the delayed output of sugarcane will likely impede ethanol production between this month and February 2017. 

The circumstance has prompted Energy Minister Gen Anantaporn Kanjanarat to order ethanol and gasohol producers to submit regular reports on their operations, including details on the amount of ethanol required for producing gasohol and the amount of ethanol remaining in stock. The acquired information would help with the preparation of solutions to ethanol shortages. 

Mr Witoon said the decline in ethanol supply has raised doubt about the private sector’s production capacity. Therefore, the DOEB might have to reconsider its gasohol E10 cancellation plan, which was initially scheduled for execution in 2017-2018, as the absence of E10 would cause a large number of consumers to shift to E20 and, in turn, increase ethanol demand by 1-2 million liters per day.

 

-- nnt 2016-12-08