Insuring energy security
Mission and Vision
On December 29, 1993, the Petroleum Authority of Thailand (PTT) will celebrate
the 15th anniversary of its operational achievements, not only as the national
oil company but also the enterprise that can successfully compete with other
multi-national firms in the petroleum business.
The main objective of PTT is to serve as an efficient government working arm in
implementing national energy policy for the country's best interests. PTT's
fully integrated petroleum activities consist of exploration, production,
logistics, transportation, refining, distribution, storage and other
petroleum-related industries.
Exploration and Production
Exploration and production activities are undertaken by PTT's wholly-owned
subsidiary, PTT Exploration and Production Public Co.,Ltd., which has been
involved in many joint ventures e.g. a 25% interest in S1 project with Thai
Shell Explora-tion and Production Co.,Ltd. in which crude oil had been found at
the Sirikit field. It is the source for an average oil output of 22,655 barrels
per day
(b/d), natural gas output of 42.6 million cubic feet per day (MMCFD) and LPG
output of 247 tons per day.
Refining
PTT is a major shareholder in two refining companies: Thai Oil Co.,Ltd. and
Bangchak Petroleum Public Co.,Ltd. which ensure consistent supplies. In
order to fulfill the growing demand for oil products, the government in 1990
granted permission to establish two more refineries i.e. Rayong Refinery
Co.,Ltd. (145,000 b/d capacity) and Star Petroleum Refining Co.,Ltd. (130,000
b/d refining capacity). PTT is holding a 36% interest in each. The new
refineries are to start operations in 1995 and 1996 respectively.
Marketing
Through more than 1,000 gas stations
nationwide, PTT's petroleum products are extensively available
to the public. The existence of PTT's products in the oil
market has become a State mechanism to ensure fair and reasonable prices after
the oil price deregulation system came into effect in 1991. Moreover, PTT can
boast of its environmentally friendly products to solve or diminish air
pollution problems resulting from fuel combustion. PTT's spearheading
ventures such as the introduction of low-leaded gasoline, low-sulphur diesel,
lower-smoke 2T lubricant and many other products have inspired other companies
to follow suit.
On the international front, PTT has entered into the petroleum market in
neighboring countries, especially those of the Indochinese region. PTT's joint
operating contract with Norway's national oil firm, STATOIL, is a bold step PTT
has taken in its expansion into the overseas market. The establishment of
PTT's representative office in Singapore in 1989 is the first
ground-breaking venture of a Thai petroleum company in the
international petroleum trade.
Natural Gas Development
At the end of 1981, natural gas was first produced from Erawan gas field of
Unocal Thailand Ltd., at the capacity of 130 MMCFD, marking the new era of
energy resources in Thailand. Indigenous petroleum products at present account
for 30% of commercial consumption nationwide, 80% of which is natural gas, the
rest crude oil and condensate.
During the initial stages of gas production, the natural gas produced was
delivered, via pipeline, to power plants and cement plants for use as fuel in
substitution for fuel oil. As natural gas discovered in Thailand is composed
of various valuable hydrocarbon components which can be separated for use as
feedstock in the petrochemical industry, efforts have been made by the
government to optimize its value. Towards this end, the first Gas Separation
Plant was constructed in 1984. Due to high demand for LPG, the second Gas
Plant (capacity of 250 MMCFD), was constructed in 1991.
PTT also takes responsiblity in investing in the construction of offshore and
onshore pipelines covering 807 kms. to transmit natural gas from the fields in
the Gulf of Thailand. One of the pipeline projects under-taken by PTT is the
construction of pipeline from the Bangkok field in the Gulf of Thailand to the
Erawan field and from the Erawan field to Khanom district in Nakhon Si
Thammarat province. Another gas pipeline will be constructed from the Erawan
field to the gas plants in Rayong and South Bangkok power plant in Samut Prakan
parallel to the existing one, to ensure the security of the gas transmission
system.
Transportation
With the attempt to alleviate traffic congestion in
Bangkok, a major policy in this respect is to transport
oil via pipeline instead of trucks and trains. PTT
has been designated as the core agency in
establishing Thai Petroleum Pipeline Co.,Ltd. (PTT
has a 30.6% interest), to construct an oil pipeline from refineries in Chon
Buri province to Saraburi province. The pipeline is expected to start
operation by the end
of 1993.
Petrochemical Industry
In order to maximize the benefits from natural gas utilzation, the National
Petrochemical Complex Phase I (NPC I) has been developed. Ethane and propane
separated from natural gas separation plants are supplied to the olefins plant
of the National Petrochemical Corporation Ltd., in which PTT holds a 49%
interest.
Investment Plan
The investment plan worth over US$ 3 billion in the next five years consists of
various petroleum related projects such as the development of PTT's oil
storages and gas stations nationwide, the construction of natural gas
transmission from both indigenous and neighboring countries' sources.
One of the major investment projects is the establishment of the Research and
Development Center, worth US$ 40 million, which will be the first national
petroleum research and development center of the country.
Conclusion
The annual turnover of more than US$ 3 billion and the profit, before tax, of
around US$ 280 million in 1992 are not the prime objectives of PTT operation.
Above all, PTT believes in maintaining its role as the national oil firm, which
not only responds to the original goals as stipulated in the law, but also
develops Thailand's strength to face up to any challenges in the years to
come.
Next Chapter: The Telephone Organization of
Thailand