PTTEP Adds Natural Gas Portfolio to 80%, Expecting Myanmar to Greenlight “Gas to Power”

PTT Exploration and Production Public Company Limited (PTTEP) revealed that the Gas to Power project with a capacity of 300 megawatts in Myanmar, is currently under a discussion on commercial development with Myanmar’s Government and await for Myanmar cabinet approvement.

 

Gas to Power is PTTEP’s strategic move in effort to expand an investment in natural gas business. 

 

In long-term, PTTEP is set to boost its natural gas portfolio up to 80% from an existing of 70%, as higher demand in natural gas across the world. While having plan to decrease oil portfolio from an existing of 30% to 20% due to a decline in petroleum demand worldwide in the future.

 

In the matter of oil prices slumped, PTTEP pointed out that despite there are some effects on its firm, PTTEP ables to manage the situation as its mainly business is focus on natural gas, with a secured natural gas selling prices as per sales agreements.

 

Meanwhile, the spread of coronavirus, which provoked a severe impact on global economy, has no significant outcome on PTTEP as 70% of business contribution is from natural gas sector. 

 

“PTTEP has a flexibility in risk management, along with an oil price hedging. Moreover PTTEP has reviewed an investment plan by cutting about 15 – 20% on investment capital and postponed some explorer project, resulting a decrease in expense.” said president and chief executive Phongsthorn Thavisin.

 

PTTEP believes this crisis will prompt a great opportunity to its business for mergers and acquisitions (M&A), which majority target in Thailand, Myanmar, Malaysia, Oman and United Arab Emirate (UAE)