THURSDAY, March 28, 2024
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Energy Ministry readies two measures to prevent crude palm oil smuggling

Energy Ministry readies two measures to prevent crude palm oil smuggling

Energy Minister Sontirat Sontijirawong said on Wednesday (January 22) that his ministry is preparing two new measures to prevent illegal import of crude palm oil (CPO) from neighbouring countries as part of efforts to ensure stability in the domestic palm price.

“The first measure is to use advanced scientific and statistical techniques to analyse the chemical structure of the sample CPO to accurately determine its origin,” he said. “The ministry will work together with government agencies, the private sector and educational institutions in developing an effective testing system based on these techniques.”
Sothirat further added that once ready, the testing system will be deployed to monitor CPO stocks nationwide, especially those in manufacturers of B100 (biodiesel made from 100 per cent pure palm oil), which is the key ingredient in manufacturing B7, B10 and B20 biodiesels. “The test system should be operational from the second quarter onwards, just in time for the Ministry of Energy’s policy to have all service stations sell B10 as standard biodiesel starting March 1,” he added.

Energy Ministry readies two measures to prevent crude palm oil smuggling

As for the second measure, the ministry aims to install Automatic Tank Gauge (ATG) at storage tanks of all biodiesel manufacturers to monitor the stock of B100 in real time and be able to identify any discrepancy in B100 volume should there be any use of smuggled CPO.
“At present there are 14 manufacturers of B100 in Thailand with 76 storage tanks; 42 of them are already fitted with ATG while the rest are expected to be fitted by October,” said Sonthirat. “The fitting process does not take long but the procurement process of the ATGs, which cost in total around Bt10 million, will take some time.”

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