PTT Plc, the national oil and gas conglomerate, has set its capital spending budget for 2018-22 at 340 billion baht, mostly to fund investment in S-curve industries and support existing businesses that are still growing.
President and chief executive Tevin Vongvanich said the company's board of directors approved the budget yesterday under the concept of "3D": do now, decide now, design now.
Of the total budget, 31.2 billion baht is for productivity improvement projects aimed at increasing efficiency at existing businesses.
Some 134.9 billion baht will go to upgrading and developing gas facilities, expanding retail business and investing in PTT's own land assets to create added value.
Work under this part of the budget will include an LNG receiving terminal and the Wang Chan Valley innovation corridor.
Some 16.3 billion baht of the budget is for new S-curve industries to suit a changing world. Key projects will include energy storage systems, a global trend, and a life science venture capital scheme.
Some 159.6 billion baht will fund business diversification, particularly for the initiative to spin off fuel retailing into a wholly owned subsidiary, PTT Oil and Retail Co (PTTOR).
"Most of the budget for PTTOR is for increasing its capital and competitiveness," Mr Tevin said.
The remaining 245.2 billion baht is for provisional investment over the next 5-10 years, mostly new S-curve investment in the long term.
"PTT has set a business plan with a major purpose, which is the country's energy security," Mr Tevin said. "We also plan to seek further business opportunities at home, as well as in foreign countries, in order to find new businesses that help strengthen the company and bring it in line with the government's policy of Thailand 4.0."
