PTT seeks an upward curve
THAILAND’S leading energy conglomerate PTT will set up a US$45 million (Bt1.6 billion) venture capital fund as part of its search for the new S-curve, said its chief executive Tevin Vongvanich.
“The PTT board recently approved the plan to establish the corporate venture capital because we are seriously exploring for the new S-curve,” he said.
S-curve generally refers to new drivers for higher growth as an enterprise enters or expects to enter maturity or a decline in its existing businesses.
The PTT venture capital will focus on four key technologies including those related to energy, digital, and robotics, said Tevin.
PTT will from this year focus more on the electricity value chain as consumers are expected to shift from being a direct consumer of oil and gas to consume more electricity.
“Within this year, there might be clarity on [our] investment in the energy storage business,” Tevin said.
Toemchai Bunnag, chief executive of Global Power Synergy, the publicly listed power and utility subsidiary of PTT, said the company expected to have some “good news” this year related to its investment in 24M Technologies Inc, a US-based battery start-up which is researching and developing what it hopes is a breakthrough lithium-ion technology.
Speaking at a media conference, Tevin also elaborated on PTT group’s new approach to drive its liquefied natural gas (LNG) business through the formation of a joint venture with its subsidiary PTT Exploration and Production (PTTEP). The joint venture involves investing in the whole LNG’s value chain, spanning from the upstream oil and gas production, to liquefaction plants, to the LNG shipping business.
Bribery scandal
“This is similar to in Myanmar where we have jointly invested in the [gas] fields [that we buy and pipe the gas to Thailand],” he said.
Concerning Rolls-Royce alleged bribery case, Tevin said a PTT committee set up to investigate the case would submit its report to the PTT board of directors on Thursday as the committee’s works would reach a 30-day milestone on that day.
Tevin said he was not certain if the report, to be submitted to the National Anti-Corruption Commission, would name persons involved with the alleged bribery case. The US Justice Department recently claimed PTT and PTTEP employees accepted bribes of more than Bt385 million from the British engineering group.
The board will also be presented with the firm’s financial results for 2016 on Thursday.
Meanwhile, Tevin said PTT had proposed the government utilise its 2,000 rai (320 hectares) plot of land adjacent the PTT’s sponsored Vidyasirimedhi Institute of Science and Technology in Rayong to build an innovation centre that would house research units of various universities, especially in robotics |technology.
Robotics is one of the future industries that the government has targeted to promote to drive as a new S-curve for the economy. The government is reportedly also considering land offers from other developers.
PTT expects oil prices to stay in a tune of $50 a barrel this year. The energy group has earmarked a Bt1.6 trillion budget for investment in the next five years, plus a provisional budget of nearly Bt300 billion if conditions and opportunities allowed.
The largest projects include the fifth gas pipeline transmission, and LNG-receiving terminal projects in Thailand. PTT will also will seek approvals from the Thai and Myanmar governments for its plan to invest in an LNG floating storage regasification unit in Myanmar around the middle of this year.
