PTT, EGAT PLAN TO INVEST BT1.8 TRILLION

       PTT Group and the Electricity Generating Authority of Thailand (Egat), both major national energy units, yesterday affirmed plans for Bt1.8 trillion of investment from 2010-2014 in order to ensure energy security.
       However, they urged the government to better communicate with local communities if it wanted to see the investments proceed smoothly.
       At the "Energy Solves Thailand's Crisis" seminar hosted by the Energy Ministry, PTT president and CEO Prasert Bunsumpun said his company's investment would further strengthen the country's energy security.
       For absolute security, he said, PTT needed to be a world-class player with a large business size, integrated value chain, strong competitiveness and strength in good governance.
       He added that since its privatisation in 2001, PTT had raced ahead in terms of its development.
       "Yet, as a national energy company, PTT still needs support from the government and the general public. Otherwise, PTT would have difficulties in competing against others. Based on the earnings ratio on sale or assets, PTT is relatively small compared to competitors like ExxonMobil or Malaysia's Petronas," he said.
       While PTT Exploration and Production (PTTEP) will invest Bt480 billion in the period, PTT and other subsidiaries will invest a combined Bt1 trillion - and Egat another Bt300 billion.
       Prasert lamented the government's policy that required PTT to shoulder oil price subsidies worth about Bt40 billion last year. Meanwhile, PTT had to subsidise the price of liquefied petroleum gas to the tune of about Bt5 billion, which only weakened the company.
       "In 2008, PTT's net profit totalled US$1.6 billion [Bt53.7 billion] and some social groups said this was too high. Yet, compared to $15 billion at Petronas or $45 billion at ExxonMobil, the profit is small. Meanwhile, PTT is responsible for seeking new energy supplies. Without profits, good governance and government support, how can PTT mobilise funds to finance the expansion?" he said.
       PTTEP chief executive officer Anon Sirisaengtaksin echoed Prasert's point, saying that government support was necessary or projects could be disrupted due to high risks.
       PTTEP's investment plan is aimed at ensuring sufficient supply, as Thailand's oil consumption will rise from 1.7 million barrels per day to 2.7 million in the next 10 years.
       The company now supplies 260,000 barrels a day and is in the process of raising this to 400,000. It is involved in 40 exploration and production projects in 13 countries, with 20 of them under exploration.
       Egat governor Sombat Sarntijaree said his agency's investment would depend on the national power development plan, which is being revised.
       He said it was necessary for Thailand to diversify fuels for power generation and for the government to further educate the public on nuclear power.
       Jiraphol Jirapraditkul, director-general of the Energy Policy and Planning Office, said that at present, local communities and non-government agencies were opposed to fuels like biomass, coal and nuclear.
       He said the situation would pose threats to national energy security, and the government would therefore do its best to communicate with the public - or no investors would dare to commit to energy projects.