PTT revises capex around EEC plans
Change takes new projects into account
PTT Plc, the country's national oil and gas conglomerate, and its subsidiaries are revising their five-year capital expenditures (capex) and investment plans to match the rise of the Eastern Economic Corridor (EEC), which the group is keen to invest in.
President and chief executive Tevin Vongvanich said the PTT executive board is expected to approve the newly revised capex shortly as some of the subsidiaries also have plans to invest or develop in EEC areas.
At end-2016, the PTT group announced its five-year capex (2017-21) would be in the range of 1.6-1.9 trillion baht. The capex was designed to match the context of weak global oil prices and the plan to cover all subsidiaries, ranging from upstream petroleum, petrochemicals and biochemicals to infrastructure and utilities businesses.
The group will need to take in additional projects for the new capex. These are mostly projects still in the feasibility or design stage.
For instance, IRPC Plc's Beyond Everest Project in Rayong province, worth US$1.2 billion (41 billion baht), is targeted to produce 1 million tonnes of paraxylene and increase ethylene cracker production capacity by 50%.
The Clean Fuels Project of Thai Oil Plc in Chonburi province, worth $4 billion aims to expand oil refinery capacity by 45% to 400,000 barrels per day. Global Green Chemical Plc will build a 10-billion-baht biochemicals complex.
The group will also take in the PTT's project to increase capacity at its liquefied natural gas receiving terminal in Rayong's Map Ta Phut. Another project due to be taken in is a new research and development centre in Rayong's Wanchan district.
Mr Tevin said many petrochemical production facilities also require improvements in order to upgrade the company's commodity-grade products to high-value products.
PTT is spearheading investment in the EEC, where PTT has already had existing investment and facilities.
The government aims to attract 30 leading multinational firms to invest in EEC, which is designated to serve as Thailand's new growth engine with high-tech and innovative cluster, over the next two years.
Under the plan, global leading international companies will be solicited in the first year, according to the secretary-general of the EEC Office, Kanit Sangsuphan.
Several international firms have expressed interest in investing in the EEC, which spans 30,000 rai in Chon Buri, Rayong and Chachoengsao provinces.
The corridor is intended to accommodate investment in 10 targeted industries: next-generation cars, smart electronics, affluent medical and wellness tourism, agriculture and biotechnology, food, robotics for industry, logistics and aviation, biofuels and biochemical, digital and medical services.
The government hopes the EEC will trigger an investment spree to bolster sustainable economic growth.
PTT yesterday officially launched field tests for electric buses (e-buses) to be used as shuttle buses from its headquarters to skytrain and underground train stations in the Chatuchak area.
The company conduct the tests on three e-buses to collect data and possible problems, before commencing investment in other energy storage industries with higher technologies.
Energy Minister Anantaporn Karchanarat said economic policymakers are conducting feasibility studies and analyses on electric vehicle (EV) production facilities in Thailand to ensure that they meet global standards.
The state utility and state majority-owned oil firm also developed 150 EV charging stations to serve rising demand in Bangkok.
PTT shares closed yesterday on the Stock Exchange of Thailand (SET) at 390 baht, down three baht, in heavy trade worth 1.28 billion baht.