Page 9 - AsiaElec Week 34

AsiaElec RENEWABLES AsiaElec

PTT looks to greener future

THAILAND THAILAND’S state-owned PTT is ramping up said, flagging up interest in also developing high-
its commitment to renewable power generation tech life sciences products.
amid a downturn in its oil and gas business. PTT also wants to expand its renewable
The company has warned that its revenue power generation portfolio from 500 MW to
could drop by more than 10% this year owing 8,000 MW, with Rerkpiboon saying: “The com-
to coronavirus’ (COVID-19) impact on global pany is conducting a feasibility study of solar
oil prices. power projects domestically and in Taiwan and
PTT posted a THB1.5bn ($47.67mn) loss India”.
in the first quarter, before bouncing back to Rerkpiboon flagged up the company’s plans
a THB12bn ($381.5mn) profit in the second to buy stakes in renewable companies in both
quarter. The company attributed the April-June countries to the Asian Nikkei Review on August
result, which was still down 53.5% on last year’s 18. The move would build upon PPT unit Global
figure, to the appreciation of the baht as well as Power Synergy Co.’s (GPSC) 2018 acquisition
lower tax costs. of 69.11% in independent Thai power producer
The Bangkok Post quoted PTT president and Glow for THB93bn ($2.96bn).
CEO Auttapol Rerkpiboon on August 19 as say- “Normally, we expand business via GPSC.
ing the collapse in international oil prices had But GPSC has recently acquired Glow Energy. So
led to a THB35bn ($1.11bn) inventory loss in we have to think about a new business model to
the first quarter. allow PTT or its subsidiary to do M&As appro-
He said: “The stock loss followed a sharp drop priately,” Rerkpiboon said.
in oil prices and petrochemical prices, which While Rerkpiboon declined to name the
affected energy business.” companies that PTT was weighing up, the Nikkei
PTT is developing a long-term strategy, how- quoted unnamed sources as saying the firm was
ever, that will see it invest THB50.3bn ($1.6bn) in talks to acquire a 48% stake in independent
this year in expansion efforts. Indian renewable power producer ReNew Power
“We’re seeking new investment in such busi- for around $500mn. ™
nesses as logistics and lifestyles,” Rerkpiboon

Novatek pledges 2030 climate goals

RUSSIA RUSSIAN LNG exporter Novatek has pledged LNG’s role in the energy mix at the expense of
to reduce its emissions over the next decade, dirtier sources of power such as coal, fuel oil and
in line with similar moves by oil and gas firms diesel.
across the world. But while some European “The present level of our greenhouse gas
energy firms have gone as far as to promise to emissions per barrel of production is already
make their operations carbon neutral over the among the lowest globally due to the use of
next decade, Novatek’s goals will be much easier state-of-the-art technologies and a high share
to accomplish. of natural gas in the company’s hydrocarbon
Novatek’s board of directors has approved a production,” Novatek CFO Mark Gyetvay com-
list of 2030 climate goals which are in line with mented. Novatek’s goals are relatively unde-
Russia’s commitments under the 2015 Paris manding, however, just as Russia’s are. Moscow
Agreement, the company said on August 25. It ratified the Paris Agreement in September last
aims to reduce per-unit methane emissions at its year, committing itself to reducing carbon diox-
production, processing and LNG operations by ide emissions by 30% by 2030.
4%, and air pollutant emissions by 20%. While for a major fossil fuel producer like
Novatek plans to reduce greenhouse gas Russia this sounds like a difficult feat, it is actu-
(GHG) emissions at its upstream activities by ally already near to meeting its target, or accord-
6% and its LNG production facilities by 5%. It ing to some estimates, has already surpassed it.
also wants to boost the rate at which it utilises The baseline for this reduction is Russia’s
associated petroleum gas (APG) to 99%, from emissions in 1990, when they were at an all-
83.3% last year. Novatek leads the 17mn tonne time high as a result of Soviet inefficiencies and
per year (tpy) Yamal LNG export project in the lack of environmental concern. The USSR col-
Russian Arctic, and has plans for several more, lapsed the following year, causing emissions to
even larger, plants in the region. plunge. Greater efficiency and increased regula-
In a statement, the company said cuts to tions since then have prevented emissions from
global emissions could be achieved by expanding returning to former levels. ™

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