PTT to establish Myanmar subsidiary
PTT to establish Myanmar subsidiary
Published: 18/07/2012 at 01:55 AM
PTT Plc, Thailand’s biggest oil and gas conglomerate, is about to set up PTT Myanmar, a new subsidiary to oversee investment in the neighbouring country as part of its US$2-3 billion investment plan there until 2016.
“PTT sees Myanmar is rich in natural resources and the group itself has long been familiar with Myanmar’s authorities,” said Nattachat Charuchinda, chief operating officer of the petroleum group.
“And above all, ahead of Asean economic integration, the group sees the time is ripe to step up expansion in Myanmar, and we’re now filing investment proposals with Myanmar’s government covering not only upstream but also downstream activities such as oil refineries, natural gas separation plants and service stations.”
He said oil refineries in particular are a key investment focus, as the existing refining plant in Myanmar is old and was designed only for domestic consumption at capacity of only 50,000 barrels per day.
“We’re keen on investing in setting up a 150,000-bpd refinery as well as a petrochemical business in Myanmar,” said Mr Nattachat.
Its investment in Myanmar has been spearheaded by PTT Exploration and Production Plc, which already has five projects there.
Natural gas from Myanmar accounts for about 30% of Thailand’s consumption, mostly for power generation.
PTT currently has investment presence in the Philippines, Cambodia, Laos, Vietnam and Indonesia. It plans to boost the number of its petrol stations in Southeast Asia excluding Thailand from to 220 in five years from 95 now.
PTT, valued at $30 billion, runs Thailand’s gas pipeline monopoly and controls more than 30 petroleum, gas exploration, petrochemical and refinery businesses.
Mr Nattachat said as part of its drive to expand in Southeast Asia, PTT, which plans to invest more than $11 billion from 2012-16, is also interested in investing in a petrochemical complex in Vietnam similar to the one now operated by PTT Global Chemical Plc (PTTGC).
That unit operates not only a refining plant but also a plastic pellet manufacturing facility. Bangkokpost
