This marks a significant move by Thailand’s energy giant when Bangchak Corporation Public Company Limited (BCP) announced its expansion into the international energy market by investing over $270 million to acquire 100% ownership of Chevron Hong Kong Limited (CHK), which owns the Caltex fuel station network and fuel storage facilities in Hong Kong.
The management views this deal not only as a business expansion but as an entry point into a market where fuel prices are three to four times higher than in Thailand, offering substantial profit opportunities within a free market system.
Regarding the ongoing case at the Anti-Money Laundering Office (AMLO) involving requests to seize Bangchak’s assets and shares worth 6 billion baht linked to the “Jim Liak-Ben Smith” network, the company affirmed that it continues normal operations and that the case does not affect its financial status or business activities.
Chaiwat Kovavisarach, Group CEO and Managing Director of Bangchak Corporation Public Company Limited (BCP), highlighted the golden opportunity in the Hong Kong market, where retail fuel prices reach 120 baht per liter, three to four times higher than Thailand, while refinery costs before tax are around 17-18 baht per liter, close to global levels.
What makes Hong Kong special is its true free market system, where the government does not intervene in pricing, allowing market mechanisms to work freely. This creates attractive price margins for producers and eliminates concerns about trade monopolies.
Additionally, Hong Kong serves as a strategic logistics hub with its airport and seaports. Bangchak will gain control of large fuel storage facilities, significantly strengthening its trading business within the group.
The management noted that a key hidden benefit of this deal is the marine fuel market, as Chevron Hong Kong has a strong customer base in this sector, with sales reaching 1 billion liters last year, complementing Bangchak’s refinery capacity.
“Acquiring the Hong Kong market will immediately support this demand, especially as the refinery expands production to 280,000 barrels per day in the future,” Chaiwat said.
Chaiwat revealed that initially, fuel stations will continue operating under the Caltex brand for business continuity, while introducing the message “Licensed by Bangchak” alongside it to build awareness.
However, within a five-year brand review period, the company plans an active two-year market test by converting two stations fully to the Bangchak brand to gauge genuine consumer response in Hong Kong.
A final decision will then be made on whether to retain the current brand or fully rebrand. The acquisition is expected to complete by mid-2026, along with renaming the company to Bangchak Hong Kong Limited to drive future business.
The deal is also viewed as a low-risk investment supported by currency factors, since the Hong Kong dollar is pegged to the US dollar, effectively meaning Bangchak is investing in US dollars—the main currency for global oil trading—thus reducing foreign exchange volatility risks.
Bangchak is confident in the investment's value, projecting a payback period of just 6-7 years based on market potential and expected cash flows, which it considers a very appropriate and satisfactory timeframe.
Bangchak aims for earnings growth in 2026 exceeding the previous year, driven by a strengthened business structure across all dimensions. The oil trading segment targets a 25% EBITDA increase, rising above 1 billion baht.
Meanwhile, the exploration and production segment plans to boost output by about 50%, reaching 50,000 barrels of oil equivalent per day to enhance energy security.
In refining and marketing, processing volume is expected to increase to 275,000 barrels per day, maintaining a robust gross refining margin (GRM) in the range of 6 to 6.5 US dollars per barrel.
The Chevron Hong Kong acquisition is anticipated to start generating results by immediately contributing an additional 750-1,000 million baht in EBITDA for the group in 2026.
In the electricity and infrastructure segment, Bangchak targets approximately 10% EBITDA growth by portfolio adjustments and investment rotations to enhance returns, supported by strong and consistent revenue from the CCGT power plant in the US.
Additionally, the 600-megawatt "Monsoon" wind power project is expected to operate at full capacity for the entire year, serving as a key engine driving profits and supporting sustainable expansion into clean energy and digital businesses in the future.
Another hot topic attracting attention is the progress of the case with the Anti-Money Laundering Office (AMLO) forwarding a request to prosecutors to seize Bangchak’s assets and shares valued at 6 billion baht, linked to the “Jim Liak-Ben Smith” network.
Chaiwat stated that despite this issue, the company continues normal operations, firmly upholding Bangchak’s identity of conducting business with integrity, focusing on generating returns for shareholders while caring for society and the environment.
He added that this matter has been ongoing for over a year, during which the company has demonstrated operational separation clearly and that it has had no impact on the company’s financial position or operations.
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