Green energy has been highlighted in PTT’s five-year business plan to help the national oil and gas company run on a sustainable basis. Nuttachart Charunchinda, senior executive vice president for corporate strategy, said 3-5 per cent of the capital-expenditure budget would be allotted for green energy development over 2011-15.
One of PTT’s subsidiaries such as Thai Oil will be chosen to invest in green energy over the next five years.
Despite the green-energy business’ low rate of return, the company will still focus more on the area.
Many green energy projects are under study, such as bioplastics, solar power, offshore wind farms and reforestation to reduce carbon dioxide and create carbon credits for sale.
The five-year business plan will be proposed to the board next month for approval and would be implemented starting in November.
Last year the board endorsed the Bt327-billion investment plan for 2011-15, of which Bt228.789 billion will be spent on already approved projects and the rest on future projects.
Most of the budget will go to the natural-gas business, including the construction of the fourth gas pipeline on land and a gas-separation plant.
The concept of the five-year business plan is “big, long and strong”. Big means PTT has to keep strong to compete with foreign players, long means to ensure business is sustainable, and strong means healthy finances and capable personnel.
The company will always invest in projects with an internal rate of return of 18-20 per cent. The average IRR of the projects that PTT has invested in is 15 per cent.
It has also changed its purchase contracts for liquefied natural gas from short-term to 20-30 years to secure a sufficient supply, Nuttachart said.
Source: The Nation