PTT and Gulf team up on Thailand’s EEC ports Laem Chabang seaport and Map Ta Phut seaport
Winning bids declared in next two months
4 April 2019
PTT Plc, the national oil and gas conglomerate, is wagering on a consortium with Gulf Energy Development Plc to develop two megaprojects in the flagship Eastern Economic Corridor (EEC), saying the companies could create good synergy in the long run.
PTT Tank Terminal Co and Gulf formed the consortium and submitted bid envelopes for the third phases of Laem Chabang seaport (114 billion baht) and Map Ta Phut seaport (55.4 billion baht).
Laem Chabang seaport is in Chon Buri province. The Port Authority of Thailand plans to announce a winning bidder on April 11. PTT and Gulf formed the consortium with China Harbour Engineering Co.
Map Ta Phut seaport is in Rayong province. The Industrial Estate Authority of Thailand plans to announce a winning bidder in May.
Chansin Treenuchagron, president and chief executive of PTT, said the group is optimistic about the partnership with Gulf because each company has different strengths.
“There could be a potential synergy between us, as PTT has made business partnerships with other local and overseas companies so we would not be trapped doing our business alone in the current sentiment,” Mr Chansin said. “Moreover, the two infrastructure bids are related to PTT’s expertise, including management of liquid gas shipments at Map Ta Phut port, while we just added management of container shipments at Laem Chabang port.”
Gulf operates independent power producers and is a major buyer of PTT’s natural gas.
Gulf plans to be a liquefied natural gas (LNG) trader, competing with PTT. Mr Chansin said the future competition should strengthen PTT’s business.
PTT has its own power subsidiary, Global Power Synergy Plc, aimed at selling electricity to industrial estates and PTT’s group of companies.
Separately, Mr Chansin said PTT is reconsidering its business presence in Indonesia because the government has changed its regulations and policies.
An oil and gas drilling subsidiary, PTT Exploration and Production Plc (PTTEP), earlier decided to divest of its entire stake in the Montara oilfield last July as part of a new strategy to focus on operations and projects in potential locations.
Last year, PTTEP was accused of damage in a lawsuit by the Indonesian government based on the Montara oil spill nine years ago. The government later withdrew the accusation. Coal mining is PTT’s sole remaining business in Indonesia.
“PTT will shift to investing in other countries such as Laos and Cambodia, where PTT Oil and Retail Business Plc has been successful,” he said.