This month’s country focus explores the rapidly growing industrial gas market in Thailand, as well as the impact the potential Praxair/Linde merger could have on dynamics in the region.

The gas business

The industrial gases business in Thailand is dominated by four main companies, with Linde Gas Thailand commanding the largest market share of approximately 31%. The company was first established in 1970 as a joint venture between BOC Australia and local state-run businesses.

Bangkok Industrial Gases, an Air Products affiliate, is the second largest company and held a market share of 26% in 2015. The third largest company in Thailand is Air Liquide. Praxair Thailand is primarily concerned with supplying the large demand for carbon dioxide (CO2) that exists in Thailand, with the other local company of note in the market being Air Products Industry (API), which became a majority-owned subsidiary of Taiyo Nippon Sanso in June 2015.

Legend:
  • Linde
  • BIG
  • Praxair
  • API
  • Air Liquide
  • Others

Most industrial gas revenues in Thailand are generated from the sale of industrial gas in cylinders and cylinder bundles. Roughly 20% of bonafide industrial gas revenues are generated through a range of supply scheme contracts, largely in the chemicals sector.

Legend:
  • OSP
  • Bulk
  • Packaged
  • Other
  • Captive

The Linde-Praxair merger

Any anti-trust issues that could arise in Thailand from the Linde/Praxair merger are likely to revolve around the production of CO2. Praxair’s operations in the country are limited to the CO2 business, with the company operating one of the largest liquid CO2 production complexes in the world in Map Ta Phut. Linde has a slightly larger presence in Thailand than Praxair, operating several ASUs, onsite nitrogen plants and a liquid CO2 plant, also in Map Ta Phut.

The future

We expect good growth within the Thai industrial gases market over the course of the next five years. Growth rates around 4.7% p.a. in a low scenario and 7.2% p.a. in a high scenario for the period of 2016-2020, leading to a market value of between $828 to 876m.

Thailand industrial gas market report

For more in-depth analysis of the Thailand industrial gas market, please contact intelligence@gasworld.com, or call +44 1872 225031