PTT Plc's management will if necessary revise its investment planning in response to the changing political situation, said vice president Pichai Choonhavachira. Particular focus will be on its plans for natural gas, the demand for which will fall if the economy slows.

PTT earlier announced a five-year investment plan, from 2006 to 2010, totalling Bt238.79 billion. The board approved the plan in February.

The bulk of the budget - Bt174 billion - has been earmarked for following projects: the third gas transmission pipeline, the project to transport gas from Thai Noi to Pranakon North/South, the gas transmission pipeline from Wang Noi to Kang Koi, the project to improve the second and third gas separation plants, a sixth gas separation plant, and the construction of natural gas vehicle-filling stations.

The company plans to finance Bt50 billion of these investments from overseas sources by seeking foreign loans and/or issuing debentures or other money instruments. But Pichai said PTT might now have to revise its business plan as regards natural gas investment.

However, he said the company had always considered political risk in its future business planning and the revision, if it happened, should not lead to a major alteration because some projects can be delayed.

"PTT has closely followed the political situation to see the extent of its impact on the economy," he said. "If the government's major policies such as mega-projects have to be delayed, this may slow down economic growth. This, in turn, will affect the demand for natural gas from the industrial sector."

He said that at any rate, the company's executives tended to make annual business revisions.

But the current unpredictable situation has prompted the company to consider whether to revise its planning sooner rather than later.

He said PTT's investment planning was based on the assumption that the demand for natural gas would grow by 7.6 per cent this year. If the economy slows, the demand for natural gas will also be reduced.

Watcharapong Thongrung

The Nation