The first meeting of the National Energy Policy Council (NEPC), chaired by junta chief Gen Prayuth Chan-ocha, set a target for national oil and gas conglomerate PTT Plc to spin off its gas pipeline and restructure its refinery business by mid-2015.
Prayuth: Chaired first meeting of NEPC
The moves follow pressure from the public for more transparency and competition in PTT's operations.
Energy permanent secretary Areepong Bhoocha-oom said after yesterday's meeting that PTT would first set up a wholly owned company to be responsible for its gas pipeline. The Finance Ministry will later acquire a 20-25% share.
The new company will not offer shares to the public through the bourse but will be strictly monitored by the Energy Regulatory Commission (ERC).
PTT's gas pipeline spans more than 3,715 kilometres including 2,240 km offshore.
The length includes the 39-billion-baht fourth section of 300 km being developed from Rayong to Saraburi that is scheduled to operate by mid-2015.
The NEPC also approved PTT divesting its entire 36% stake in Star Petroleum Refining Co (SPRC) via an initial public offering by mid-2015. The other 64% is held by California-based Chevron Corporation.
PTT will be allowed to decide whether to divest its 27% share of Bangchak Petroleum Plc.
New chairman Piyasvasti Amranand has already made his strategy clear that the oil giant wants to divest shares in both SPRC and Bangchak.
"At present, PTT holds shares in five of the six oil refineries in Thailand. The share divestment will open the market for free competition to bring good services and products to customers," said Mr Areepong.
Senior executive vice-president Chakree Buranakanon said PTT fully supported the NEPC's plan to separate the gas business.
The NEPC yesterday also set a deadline for holders of solar farm and solar rooftop licences for projects with combined capacity of nearly 2,000 megawatts to operate commercially by the end of next year.
Mr Areepong said the NEPC set the deadline to pave the way for agencies to outline measures for the second phase of solar power development.
The ERC awarded solar licences for 2,537 MW in 2009-10, but only projects totalling 1,083 MW have operated, with another 400 MW in the pipeline.
The NEPC also agreed that energy policymakers should review the power development plan for 2015-36, taking into account development of renewable energies and energy conservation.
"The plan should take three months and will be the first to integrate energy use in the transport sector," said Mr Areepong.