The PTT Group will be investing about US$100 billion (Bt3.2 trillion) in various energy areas over the next decade in a move to boost its annual revenue to about $140 billion.
PTT's president and CEO Prasert Bunsumpun said yesterday that around half of the investment would go into the upstream energy sector, including the production and exploration for new oil and gas sites, as well as liquefied natural gas (LNG). PTT hopes this investment will help bring its revenue high enough so it makes the Fortune 100 list of top companies.
About 50-per-cent of the budget is also slated for investment overseas, which PTT believes will start contributing around 20 per cent of the revenue in the next five years.
"In order to achieve the $140-billion revenue target, PTT's earnings must grow by 8 per cent yearly," he said.
Apart from investing in the upstream energy sector, PTT earlier said 15 to 20 per cent of the budget would be spent on downstream energy, 20 per cent in the petrochemical industry and 10 per cent in the alternative energy. The total investment will help boost PTT's gross profit margin to increase in the future.
Chainoi Puankosoom, president and CEO of PTT Aromatics and Refining (PTTAR), said the firm will submit a proposal to the board of directors in the next two months about the setting up of a green jet-fuel production plant. The feasibility study of this project is nearly completed and an investment of roughly $150 million is needed.
He said once the board approved the project, construction of the plant could begin in 2012 once the environmental and health impact assessments have been completed.
Investing in green jet-fuel is a good move for PTTAR because over the next two years all airlines flying to European destinations will be required to use this fuel in order to reduce carbon emissions.
Since Singapore is already investing in green jet fuel, Thailand might lose out because then all flights heading for Europe will have to stop off at the island state to refuel.
"We believe the project will offer good returns. An estimated 400,000 tonnes of palm oil will be needed per year for the production," he said.
Chainoi added that PTTAR had to keep an eye on the price of petrochemical products as well as on its refinery business in the second half of the year because there were still many uncertain factors. For instance, China's economy is growing, but at a lower rate, while the US economy has not improved fully yet. Besides, unemployment in the US remains a major concern, the global oil price continues dropping and the baht is getting stronger.
"We are sticking with our target and have no plans to adjust it. However, we still have to monitor these factors carefully. This year we expect to produce nearly 2.2 million tonnes of aromatic products, which is at our full annual capacity. The sales will depend on prices in the second half of this year," he said.