July 20, 2011 / 5:20 AM / 8 years ago

UPDATE 1-Thai PTT group plans $100 bln investment over 10 yrs

* Focus on foreign investment, petroleum exploration

* Aims to boost group revenue to 6 trillion baht within 10 yrs

* Considers plans to develop a regional LNG hub

* Considers plans to build a second LNG terminal at new location

* Shares up 1.5 percent, outperform market (Adds quotes, details)

BANGKOK, July 20 (Reuters) - Thailand’s top energy firm, PTT Pcl , plans group investment of $100 billion over the next 10 years, by the end of which annual group revenue is expected to have reached 6 trillion baht ($200 billion), Chief Executive Prasert Bunsumpun said.

Half of the amount would be spent on foreign investment and the other half on petroleum exploration and production, Prasert told reporters.

State-controlled PTT plans to submit its business plan to its board this month, which the group planned to invest around 1 trillion baht in the next five years, he said.

Under the five-year plan, PTT itself is expected to invest about 330 billion baht, with more than 400 billion baht for PTT Exploration and Production Pcl (PTTEP) and more than 200 billion baht for its petrochemical and refinery businesses.

PTT, after its acquisition of Austalian coal miner Straits Resources Ltd, plans to boost its coal output to 30-40 million tonnes in 2015 and to 70 million tonnes in 2020 from 10 million tonnes now, Prasert said.

PTT, Asia’s third-biggest oil and gas firm by market value, runs Thailand’s gas pipeline monopoly and controls more than 30 petroleum, gas exploration, petrochemical and refinery businesses.

It has been actively buying oil and gas assets overseas to meet strong domestic demand and secure energy reserves.

The company, valued at $32 billion, aims to boost revenue to 4 trillion baht within five years and 6 trillion within 10 years, versus a projected 2.3-2.4 trillion baht in 2011, Prasert said, adding PTT aimed to be in the Fortune top 100 by 2020.

At 0455 GMT, PTT shares were up 1.5 percent, outperforming a 0.6 percent gain in the broad market .


The company is considering a plan to develop a regional trading hub for liquefied natural gas (LNG) and may build Thailand’s second LNG terminal to serve fast-growing demand.

“It should come no later than next year, the decision on a second LNG terminal. We have to consider the construction period and this could serve as a trading hub in the region,” Prasert said.

Chitrapongse Kwangsukstith, chairman of PTT International Co Ltd, said the second terminal would cost about $400 million.

PTT began a commercial run of the country’s first LNG terminal this month and is already considering plans to double capacity at this existing facility to 10 million tonnes a year, Prasert said.

“We are looking for a new location to build the second terminal. If it’s done, our capacity will rise to 20 million tonnes in the next 20 years,” he said.

LNG is a key fuel source for Thailand, which uses natural gas to generate about 70 percent of its electricity.

Thailand is among a growing number of new LNG buyers in Asia as imports of the cleaner-burning fuel allow countries to diversify and become less dependent on oil.

To ease a gas shortage resulting from an offshore pipe leak, PTT planned to import a total of 280,000 tonnes of LNG and producers in Nigeria, Qatar and Indonesia would be suppliers, Prasert said.

PTT has joined with its PTT Exploration and Production Pcl subsidiary to invest in a floating LNG project in Australia, expected to start operations in 2016 with capacity of 2 million tonnes a year.

Thailand’s LNG terminal comes ahead of projects in neighbouring Malaysia and Singapore. Malaysia is building a 3.8 million tonnes per year (tpy) terminal in western Malacca state, due to be ready in the middle of next year, and is looking at building another in southern Johor state.

Singapore, which aims to become a business centre for LNG, is expected to launch a 6 million tpy terminal in early 2013. ($1 = 29.91 Baht) (Reporting by Khettiya Jittapong; Editing by Alan Raybould)

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