Thai giant to focus on natural gas and greenhouse gas intensity in new projects
Thailand’s national oil and gas company PTT Exploration and Production (PTTEP) has revealed its goal to achieve net-zero greenhouse gas emissions by 2050 with the help of technology, employing carbon capture and storage (CCS), zero routine flaring and renewables to forge a sustainable asset portfolio and curb emissions.
The Thai player announced its target and plan for net-zero greenhouse gas emissions during the 2022 Annual General Shareholders’ Meeting (AGM) on Tuesday. PTTEP held the 2022 AGM on 28 March 2022 to acknowledge its 2021 performance and new business plan, approving the dividend payment for the year 2021 at the rate of 5 Baht per share.
PTTEP disclosed its target and plan to achieve net-zero for Scope 1 and Scope 2 greenhouse gas (GHG) emissions across its operations by 2050 with the EP Net-Zero 2050 concept, explaining that new projects with an emphasis on natural gas and greenhouse gas intensity would be factored into the investment decision-making process.
The company intends to pursue the development of technology to reduce greenhouse gas emissions from the production process. The focus will be on CCS and zero routine flaring initiatives for new projects. The firm will also focus on emissions offsetting through the planting of trees in forests and mangroves to increase the natural carbon sink.
Within its diversification strategy for the energy transition toward a lower-carbon future, PTTEP elaborates that it plans to build superior growth for AI and Robotics Ventures (ARV) by accelerating go-to-market activities while seeking opportunities in gas to power, LNG to power and renewable energy business. In addition, the Thai player will be exploring new business opportunities from in-house technology commercialisation and building a green future energy portfolio focused on carbon capture, utilisation and storage (CCUS) and hydrogen.
The company is concentrating its efforts on greenhouse gas management to minimise the impacts of global warming and climate change. To this end, the firm set a target to reduce greenhouse gas emissions intensity by at least 30 per cent by 2030 and 50 per cent by 2040 from the 2020 base year.
The Thai player will use several initiatives to achieve its net-zero aims. This includes flare gas recovery and utilisation, energy efficiency improvement, production efficiency improvement, reduction of methane leak, adoption of renewable energy in operations, and feasibility studies to apply the CCUS technology for offshore operations. Additionally, the firm aims to store and when possible upcycle the captured carbon dioxide from the production process into new products.
Back in October 2021, PTTEP appointed a new CEO to strengthen the company’s E&P business while preparing for the expansion into renewable energy and business opportunities emerging from the energy transition including carbon capture, utilisation and storage to reduce greenhouse gas emissions, and new forms of energy (Future Energy) such as hydrogen, which are under the feasibility study.
When it comes to PTTEP’s recent activities, it is worth reminding that the firm will be taking over the operatorship of the Yadana gas field located offshore Myanmar after its partners – TotalEnergies and Chevron – decided to exit the project.