Established in December 1978 as a state enterprise, Petroleum Authority of Thailand or PTT was formed to conduct petroleum and related businesses. Over two decades later, PTT Public Company Limited (“PTT Plc”) was registered as a company under the Corporatisation Act on October 1 2001 with a capital of 20bn baht ($673m). Currently, PTT Public Company Ltd (PTT) is Thailand’s fully-integrated energy company with leading position in exploration and production, transmission, petrochemical, refining, marketing and trading of petroleum and petrochemical products. PTT is 51 percent directly owned by the Ministry of Finance (MoF), with a further 15 percent held through Vayupak Mutual (government-invested funds).
PTT’s main businesses include procurement, transmission and distribution of natural gas in Thailand through a 3,508km pipeline network, as well as marketing and processing of natural gas through five gas separation plants. The company, through its 65.40 percent-owned subsidiary, PTT Exploration and Production Public Company Ltd., conducts oil and gas exploration and production both domestically and overseas. Most projects are in the Gulf of Thailand, and overseas projects cover Asia Pacific, the Middle East and West Africa.
In addition, PTT is directly engaged in oil marketing and international trading. It also holds interests in five domestic oil refineries, four of which are listed entities. These refineries and PTT’s gas separation plants support petrochemical operations, providing a wide range of liquid and gas-derived petrochemical products.
The success factor of PTT comes from management vision to expand business in relation to the global trend, such as the decision to involve in Petrochemical business, the construction of the new transmission pipeline, debt restructuring for affiliates, merger and acquisition of the affiliates, acquiring RRC refinery, jet and coal business etc. Moreover, the world was recovering from the Asian crisis in 1997, thus, the increase in the demand of Oil and Petrochemical product which led to the increase in petroleum product price. As a result PTT’s Group performance had rapidly grown from THB 386bn in year 2001 to THB 1,586bn in 2009.
Through keeping the core value chain expansion to become a ‘Top Oil and Gas Player,’ E&P business is expanded in and outside Thailand to cover the rising demand while the gas utilisation is developed to enlarge the value addition of gas. Moreover, the bigger pipeline network, both onshore and offshore, LNG receiving terminal, and the distributing pipelines to provide gas for the city are on track. To the downstream business, petrochemical consolidation is accelerated to increase the synergy among the leading companies. With an aspiration to become a global energy conglomerate, PTT has enhanced its value chain through diversification to related businesses such as coal mining overseas, clean energy business, and bio-petrochemical development.
Looking forward to a sustainable future, with the three strategic pillars of High Performance Organisation, Corporate Governance, and Corporate Social Responsibility, by 2020 PTT aspires to be a Fortune Global 100 company with top quartile performance, and to be listed on the Dow Jones Sustainability Index by 2013. Along with the aforementioned business plans for growth, PTT never loses its grip on Corporate Social Responsibility. Environmental protection and preservation of nature have been among the Group’s top priorities. Continuous improvement, benchmarking and monitoring of Green House Gas (GHG) emissions and energy conservation are placed in the latest roadmap for sustainability. More clean, renewable and improved environmental-friendly products are to offer to customers, both at home and overseas. Arguably, PTT is among the main reasons why Thailand has the most advanced biofuel programmes (Gasohol and Biodiesel) in ASEAN, on a commercial scale. PTT’s Research and Technology Institute has also dedicated a good portion of its brains and capital resources to Green and Clean technologies. Recently, a consortium was formed among research institutes, universities and PTT to collectively explore possibilities in CO2 absorption applications and biofuel that can be derived from micro-algae. Improved battery technology research that possibly can enhance the future performance of solar power storage is also ongoing. Meanwhile, PTT’s continual reforestation and forest conservation programmes in rural areas are considered one of the top “carbon-sink” climate change risk mitigations at a national level.
Through PTT efforts, more than one million Rai (approximately 250,000 hectares) of mature forests have been added to the country thus far. Last but not least, the company intends to create and enhance awareness on climate change and energy conservation for the public through designed programmes and campaigns.
Though the company yearns for a number of lofty goals on an international stage – back at home in Thailand – PTT Group simply wishes to personify the “power for sustainable future” for the country and its citizens.