ENERGY FIRMS plan to expand their investments by more than Bt1 trillion in alternative energy and in adopting a new business model from 2018 to 2022 to ensure long-term business growth is sustained.
For example, PTT Plc has set aside an investment budget for 2018-22 of about Bt585 billion to expand its investment in both the energy sector and in new business.
Bangchak Corporation Plc has set aside a budget of Bt113 billion for the same period to expand investment in energy and alternative energy, along with new business.
PTT Plc’s president and chief executive officer, Tevin Vongvanich, said recently that the company has a five-year investment plan worth Bt585 billion for the next five years. This budget is separated into two categories.
The first portion of Bt340 billion is earmarked for investments tied to existing business plans.
The company, for example, has budgeted Bt130 billion to be spent on investments in PTT Oil and Retail Business Plc, which requires funds to buy some assets from PTT Plc.
The remainder of the Bt340 billion allocation – Bt210 billion – will be in investments for PTT Plc’s business.
Under the second category, Bt245 billion will be allocated to investments in potential businesses and new businesses as determined by the opportunities that arise, Tevin said.
“We cannot say what we will spend the Bt245 billion on at this time, but this budget prepares us for a new business model within five years,” he said.
Tevin said the business needs to expand in alternative energy and in a new business model to create sustainable income for the group in the long term.
An investment budget averaging US$3.1 billion (Bt99.2 billion) a year has been set aside, said PTT Exploration and Production Plc’s chief executive officer Somporn Vongvuthiporn-chai.
About $1.8 billion will go to capital expenditure to acquire, upgrade, and maintain physical assets such as property, industrial buildings or equipment.
And $1.33 billion will support investment in new businesses such as battery storage, along wit new businesses related to the electricity business.
Thai Oil Plc’s president and chief executive officer Atikom Terbsiri said the company is investing in a study for a potential clean fuel project (CFP), with a decision to be finalised in October. Under its business plan, the company set aside an investment budget of $150 million for 2018-19. For 2020-22, it is setting aside investment funds of about $4 billion subject to a final decision by the company’s board on whether to proceed with the CFP project.
Global Power Synergy Plc has set aside an investment budget of Bt28.63 billion for opportunities in alternative energy businesses, with a focus on energy storage and alternative electricity sources, said the company’s president and chief executive officer Toemchai Bunnag.
Meanwhile, Bangchak Corporation Plc and its subsidiaries have set aside a five-year investment budget of Bt113 billion until 2022, focusing on alternative energy, green innovation, and environment both domestic and overseas, the company’s president and chief executive officer Chaiwat Kovavisarach said recently.
Up to one-third of its budget – about Bt37.66 billion – would develop the group’s bio-complex at Chachoengsao province, located in the Eastern Economic Corridor. The complex will combine bio-based products, energy storage, food supplements, research and development, and bio-based materials, he said.
The group also set aside an investment budget of about Bt150 million a year or $5 million to invest in start-ups at home and abroad, especially in the US Silicon Valley, Tel Aviv in Israel, and China. This follows the group’s success in investing $37 million in Lithium Americas Corp in 2015, which will start to produce lithium in 2020, Chaiwat said.
Electricity Generating Plc has set aside an investment budget |of more than Bt12 billion for this year.
The funds will be directed towards three overseas power projects in the pipeline: the Xayaburi and Nam Theun 1 projects in Laos |and the San Buenaventura |facility in the Philippines, the |company’s president Jakgrich Pibulpairoj said.
The company also is studying whether to expand its investments in other countries in the Asia-Pacific region, especially in India, by focusing on electricity from both alternative energy and fossil energy sources, Jakgrich said.