The board of directors of Thai oil and gas conglomerate PTT Group approved the August 2, 2022, transfer of PTT Mining of Hong Kong (PTTML), a coal mining company, to Indonesia’s PT Astrindo Nusantara Infrastruktur Tbk (Astrindo), an investment firm specializing in integrated energy infrastructure, for US$ 471 million.
Currently, PTTML owns coal concessions in Madagascar, Kalimantan, Indonesia, and Brunei Darussalam. According to Nikkei Asia, the acquisition is anticipated to be finished by 4Q22.
PTT President and CEO Auttapol Rerkpiboon said, “The divestment of the coal industry is in keeping with PTT’s strategy towards sustainability and clean energy and the company’s new vision of “Powering Life with Future Energy and Beyond.”
The Thai government has established goals for energy that include reducing the use of fossil fuels, reducing its dependency on natural gas, increasing the amount of power produced from renewable sources, and liberalizing the energy market so that everyone has inclusive and fair access to energy.
In line with Thailand’s national target, PTT Group’s Clean and Green Strategy calls for a 20% reduction in greenhouse gas emissions from its operations by 2030 as compared to business as usual scenarios.
PTT Group has changed its course to focus on green energy produced from fossil fuels in order to achieve this goal. The conglomerate’s dedication to a net zero transition is best demonstrated by the case of PTTML.
Through social development programs, PTT Group has been assisting national efforts to lower greenhouse gas emissions.
PTT Group has been preparing for the implementation of a carbon trading system or carbon tax since 2020, as well as the application of carbon pricing tools to investment decision-making processes.
The Group has also used the idea of a circular economy to create green solutions. For instance, the “Circular Living” idea, which employs more than 70% recycled waste as materials for store décor, was used to open the Caf Amazon at PTT Station Sam Yan.
Astrindo keeps funding coal-fired power projects even as the globe strives to achieve net-zero emissions.
Since Astrindo is more concerned with developing an integrated infrastructure platform that lowers emissions today in the field of transportation and logistics, it appears that the company’s long-term goal has less to do with the current volatility in coal prices.
“Considering the present pricing of coal around the world, the purchase of PTTML seems opportunistic. However, we had already planned to purchase coal mines prior to the current price increase, according to Astrindo President and Director Ray Anthony Gerungan.
By the conclusion of this quarter, experts and Trading Economics’ global macro models predict that the price of coal will be US$432.62/MT.
Astrindo wants to broaden the platform to include carbon-neutral businesses. Integrated coal mine operations, in particular, include mining as well as the building of a coal port for effective transportation.
Inventor: PTT Group. compiled in August 2022 by DIGITIMES Asia.