welcome to your cdp climate change questionnaire 2019 c0 ......ptt exploration & production...
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PTT Exploration & Production Public Company Limited CDP Climate Change Questionnaire 2019 Monday, August 5, 2019
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Welcome to your CDP Climate Change
Questionnaire 2019
C0. Introduction
C0.1
(C0.1) Give a general description and introduction to your organization.
PTT Exploration and Production Public Company Limited (PTTEP), a Thai national petroleum
exploration and production organization, is a publicly listed company on the Thai stock
exchange, and a subsidiary of PTT Public Company Limited, Thailand’s national petroleum
company. PTTEP’s mission is to operate globally to provide reliable energy supply and
sustainable value to all stakeholders. Therefore, we set our vision to be an energy partner of
choice through competitive performance and innovation for long-term value creations.
In order to shape the behaviour and culture of the company in pursue of our vision, PTTEP’s
company values, “EP SPIRIT”, reflex key success factors and drivers of our business in which
PTTEP expects these values to be embedded into every PTTEP individual to generate our
corporate DNA of “Passion to Explore with Responsibility”.
PTTEP has worldwide operations of 40 projects in 11 countries as of December 2018.
The company is engaged in the exploration, extraction, production and development of
petroleum products. It produces crude oil, condensate, natural gas and liquefied petroleum gas
(LPG). The company is also engaged in petroleum-related businesses, such as jetty, bulk tanks
and warehouse management.
C0.2
(C0.2) State the start and end date of the year for which you are reporting data.
Start date End date Indicate if you are providing emissions data for past
reporting years
Row
1
January 1,
2018
December 31,
2018
No
C0.3
(C0.3) Select the countries/regions for which you will be supplying data.
Australia
Myanmar
Thailand
PTT Exploration & Production Public Company Limited CDP Climate Change Questionnaire 2019 Monday, August 5, 2019
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C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your
response.
THB
C0.5
(C0.5) Select the option that describes the reporting boundary for which climate-
related impacts on your business are being reported. Note that this option should
align with your consolidation approach to your Scope 1 and Scope 2 greenhouse gas
inventory.
Operational control
C-OG0.7
(C-OG0.7) Which part of the oil and gas value chain and other areas does your
organization operate in?
Row 1
Oil and gas value chain
Upstream
Other divisions
C1. Governance
C1.1
(C1.1) Is there board-level oversight of climate-related issues within your
organization?
Yes
C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the
board with responsibility for climate-related issues.
Position of
individual(s)
Please explain
Director on
board
CEO is as member of Board of Directors (BoD) who direct company vision ,
mission, objective and strategy of business development including sustainability. As
a representative of BoD, CEO cascades company direction via top managements
through relevant management committees including Climate Change Committee
PTT Exploration & Production Public Company Limited CDP Climate Change Questionnaire 2019 Monday, August 5, 2019
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(CCC ) , Risk Management Committee (RMC), Sustainable Development (SD)
Committee, Climate Change Committee (CCC, currently integration with SD
Committee) , and Safety, Security, Health and Environment (SSHE) Council.
CEO adopt Climate related target as individual KPI and deployed through his
subordinates, where the performance are followed up on a quarterly basis. In
addition, Risk Management Committee which is a Board level committee regularly
assessed enterprise risks including the Climate related risks. Compliment to
operational related Climate target, the Board approved the Reforestation initiative
under the GHG Reduction and Offsetting roadmap.
C1.1b
(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency with
which climate-
related issues are
a scheduled
agenda item
Governance
mechanisms into
which climate-related
issues are integrated
Please explain
Scheduled – some
meetings
Reviewing and guiding
strategy
Reviewing and guiding
major plans of action
Reviewing and guiding
risk management
policies
Reviewing and guiding
annual budgets
Reviewing and guiding
business plans
Setting performance
objectives
Monitoring
implementation and
performance of
objectives
Overseeing major
capital expenditures,
acquisitions and
divestitures
Monitoring and
overseeing progress
against goals and
targets for addressing
climate-related issues
In order to moving towards our goal of Low-Carbon
footprint organization and ensuring achievement of
GHG reduction target, Climate related strategy and
relevant policy and plans of action, is oriented by our
Board of Director, will be at least quarterly reviewed
via company performance monitoring. The agenda for
the meeting will not be fixed for any issues, however
when the climate related issues e.g. climate strategy
and related business plan, acquisition and divestiture,
etc. are raised, such agenda. will be reserved. Hence
CEO and top management are responsible for
briefing the BoD on that matter. For example, external
parties require disclosure of PTTEP’s supplementary
data and information regarding climate related issues,
e.g. company performance and target, etc. apart from
published report, this issue will be brought to the BoD
meeting for review and consideration.
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C1.2
(C1.2) Provide the highest management-level position(s) or committee(s) with
responsibility for climate-related issues.
Name of the
position(s) and/or
committee(s)
Responsibility Frequency of
reporting to the
board on climate-
related issues
Chief Executive
Officer (CEO)
Both assessing and managing climate-related risks
and opportunities
Quarterly
Other C-Suite
Officer, please
specify
SD and SSHE Council
Other, please specify
governance committee to oversee the management of safety, security, health and environment including climate related issues of PTTEP under the umbrella of SD Policy and SD Roadmap
Quarterly
C1.2a
(C1.2a) Describe where in the organizational structure this/these position(s) and/or
committees lie, what their associated responsibilities are, and how climate-related
issues are monitored (do not include the names of individuals).
Climate-related issues e.g. climate related strategy, relevant policy, risks and opportunities is
oriented by our Board of Director whose will be at least quarterly reviewed via company
performance review and monitoring. However, the related agenda will be additionally reserved
once the climate related issues e.g. climate strategy and related business plan, acquisition and
divestiture, etc. are raised. CEO and top management are responsible for briefing the BoD on
that matter. For example, external parties require disclosure of PTTEP’s supplementary data
and information regarding climate related issues, e.g. company performance and target, etc.
apart from published report, this issue will be brought to the BoD meeting for review and
consideration.
In addition, Risk Management Committee which is a Board level committee regularly assessed
enterprise risks including the Climate related risks. Compliment to operational related Climate
target, the Board approved the Reforestation initiative under the GHG Reduction roadmap for
Offset. Corporate Governance Board is in charge of annual budget, implementation progress
and performance monitoring oversight on a quarterly basis.
Sustanability Development (SD) and -Safety, Security, Health, Environment (SSHE) Council is
the highest governance committee to oversee safety, security, health and environment of
PTTEP under the umbrella of SD Policy and SD Roadmap and chaired by the Chief Executive
Officer (CEO). The Council consists of Executive and Senior Vice Presidents from diverse
backgrounds and functional groups and divisions to provide a balanced view on SD and SSHE
approach. To help the Council with the execution of SD and SSHE initiatives, there is a
Sustainable Development Working Team (SD Working Team) consisting of representatives
PTT Exploration & Production Public Company Limited CDP Climate Change Questionnaire 2019 Monday, August 5, 2019
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from multiple functions. The SD Working Team is responsible for defining strategy, roadmap,
key performance indicators, action plan, guidelines & tools; performance monitoring;
supervising compliance; and reporting to the Council. The Council meetings are held every
quarters to review and endorse SD and SSHE related issues, i.e. PTTEP GHG reduction target
and performance monitoring, energy efficiency roadmap and target, and DJSI achievement
plans.
PTTEP also supports the United Nations Sustainable Development Agenda. In 2017 all 17
Sustainable Development Goals (SDGs) were reviewed by the Council. To ensure our
alignment with SDGs, our targets, strategies, roadmap development and implementation are
monitored against the SDGs. For an example of Goal 13: Climate action, we targeted to reduce
GHG emission intensity by at least 20% and 25% by 2020 and 2030 respectively compared to
the 2012 base year, reduce GHG emission by 220,500 tonnes of CO2e in 2018 and reduce
energy consumption intensity by 5% by 2020 compared to the 2012 base year. In 2018, we
have progress on our reduction of GHG emission intensity by 7.2%, reduction on GHG
emission by 269,412 tonnes of CO2e. However, the energy consumption intensity increased by
5% compared to the 2012 base year as a result of our field life matured and consumed more
energy for production. PTTEP keeps monitoring and improving our performance to achieve our
targets which also aligned with SDGs via the council.
C1.3
(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Yes
C1.3a
(C1.3a) Provide further details on the incentives provided for the management of
climate-related issues (do not include the names of individuals).
Who is entitled to benefit from these incentives?
Chief Executive Officer (CEO)
Types of incentives
Monetary reward
Activity incentivized
Emissions reduction target
Comment
PTTEP has short and medium term GHG emissions intensity reduction targets endorsed
by SD-SSHE Council Committee in which CEO acts as chairman. For the medium term
target, PTTEP aims to at least reduce 25% GHG intensity by 2030 relative to 2012 base
year covering all operating assets under our operational control.
Achievement of this target includes in sustainability dimension of company KPI such as
PTT Exploration & Production Public Company Limited CDP Climate Change Questionnaire 2019 Monday, August 5, 2019
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achievement of DJSI listed company in which our company is awarded for 5 consecutive
years. The company KPI was allocated at 5% to the DJSI achievement. This links to
salary increasing and bonus consideration of CEO.
Moreover, percentage of GHG emissions reduction has been set as SSHE KPI since
2013. As a corporate KPI, the target is cascaded to the functional group, the department
and the individual level of relevant employees and included in the individual balance
score card that influences bonus allocation.
Who is entitled to benefit from these incentives?
All employees
Types of incentives
Monetary reward
Activity incentivized
Emissions reduction project
Comment
In addition to emissions reduction target, PTTEP also bestows awards upon those within
the company who have achieved excellence in the areas of innovation and performance
excellence:
1. Innovation Award - is a contest on innovative concepts or creative new ideas on work
process, technology and green practice to support PTTEP business in both technical
and non-technical areas.
2. Performance Excellence Award – is an award for employees (as an individual or a
team) to increase operational efficiency, operational excellence, and benefit to business
and society by submitting projects for the award competition through each functional
group. The criteria include benefits and revenue generated to the company, cost
savings, knowledge management and sharing, team collaboration effort across the
organization and promotes green practice (low carbon and low environmental impacts).
The team winner will all receive a monetary award for their achievements.
Who is entitled to benefit from these incentives?
All employees
Types of incentives
Recognition (non-monetary)
Activity incentivized
Efficiency project
Comment
PTTEP Technical forum – is a non-monetary recognition for employees to build,
maintain and develop the highest possible standards in the company’s technical
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capabilities and staff competencies; serve as an effective venue in sharing and
transferring petroleum industry knowledge, best practices and technical experience, and
to function as a challenging venue for PTTEP technical professionals to participate in
and gain experience from a world-class petroleum industry technical conference.
Who is entitled to benefit from these incentives?
Buyers/purchasers
Types of incentives
Monetary reward
Activity incentivized
Environmental criteria included in purchases
Comment
PTTEP has in place the PTTEP Vendor Sustainable Code of Conduct which governs
the conduct of vendors on issues relating to their business operations and ethics,
human rights, occupational health and safety, as well as environmental expectations.
The company also developed a PTTEP Green Procurement Roadmap and set the goal
to increase the green procurement to 30% of total spending by 2022. To achieve this
goal, we developed the “Green Procurement Criteria” for each of the work categories,
which were then certified by the Thailand Environment Institute (TEI), and also
developed an approach to evaluate the environmental considerations of procurement
practices.
Procurement department as the company buyers/purchasers set KPI to allocated at 8%
to the achievement of 2018 green procurement related work. This links to salary
increasing and bonus consideration of VP and cascades to the individual level of
relevant employees and included in the individual balance score card that influences
bonus allocation.
In 2018, green procurement constituted 9% of total procurement value in 2018.
C2. Risks and opportunities
C2.1
(C2.1) Describe what your organization considers to be short-, medium- and long-term
horizons.
From (years) To (years) Comment
Short-term 1 5
Medium-term 6 15
Long-term 16 35
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C2.2
(C2.2) Select the option that best describes how your organization's processes for
identifying, assessing, and managing climate-related issues are integrated into your
overall risk management.
Integrated into multi-disciplinary company-wide risk identification, assessment, and management
processes
C2.2a
(C2.2a) Select the options that best describe your organization's frequency and time
horizon for identifying and assessing climate-related risks.
Frequency
of
monitoring
How far into the
future are risks
considered?
Comment
Row
1
Six-monthly
or more
frequently
>6 years In 2013 a Climate Change Risk Assessment (CCRA) was
conducted for the time periods 2014 (short-term), 2020 and
2030. We incorporated the risks, opportunities and
mitigation measures into the company wide risk
management system known as the SAP GRC system to
analyze our climate change risks and update on our
mitigation progresses quarterly. In 2014, we extended our
risk assessment time horizons to 2015 (short-term), 2030
(medium-term) and 2050 (long-term). Risks are categorized
in three areas: physical, market and regulatory. The
preliminary climate change risk assessment, after
endorsement by the SD-SSHE Council has been included
into the Enterprise/Company-wide risk management
process.
C2.2b
(C2.2b) Provide further details on your organization’s process(es) for identifying and
assessing climate-related risks.
In the context that Thailand is committed to reduce GHG emissions by 20% by 2030, while the
end use of energy is accounted for more than 75% of national GHG Emission, the effects of
future regulatory and policy changes will inevitably land on the energy industry. With the
government’s determination to “head towards sustainable low carbon growth” stipulated in the
Thailand Climate Change Master Plan (2015-2050), this poses regulatory and compliance risks
for the sector to adapt in line with new regulations in the near future. The Alternative Energy
Development Plan in 2015-2036 is also set to increase 30% of alternative energy consumption,
which directly affects demands of non-renewable energy. This increasingly poses risks to the
existing market demand of fossil fuel, while promote more advanced low carbon and renewable
energy technologies. Today, the awareness of climate change impacts are stronger than ever,
society expects leading energy companies to adapt towards green economy at a faster pace.
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The conventional perception of not-so-green oil and gas industry may also pose reputational
risks for companies who are slow to adapt to low carbon future. With this regard, PTTEP has
considered the climate change issues as corporate/enterprise risk and need to be assessed
and monitored carefully.
PTTEP has our own process to identify and assess climate related risks in which 3 key
business areas are involved, i.e. physical, market, and regulatory risk. The process also
indicates corresponding adaptation responses available to PTTEP to manage changes
associated with future climate change and provides PTTEP with a framework for continual
review and assessment as well as allows the cost of potential impacts and management
options to be integrated into business planning.
The risk assessment process adopted the PTTEP Corporate Risk Matrix as a basis to assess
the physical asset, regulatory and market risks. This ensured a consistency of risk allocation
during risk assessment processes. Risks identified in the 3 key areas were ranked according to
Likelihood (Score 1-4) and Consequence which is categorized into 5 levels of financial impact
based on PTTEP’s Risk Management Standard. The cost of potential impacts is divided into 5
categories dependent on impact level following to PTTEP risk matrix: <2, 2-20, 20-200, 200-
2,000, >2,000 MMUSD. The cost over than 20 MMUSD is defined as substantive impact.
C2.2c
(C2.2c) Which of the following risk types are considered in your organization's
climate-related risk assessments?
Relevance &
inclusion
Please explain
Current
regulation
Relevant,
always
included
Current regulation is classified as a Rregulatory related risks. Both
current and emerging regulation are one of the key business areas
under our climate risk assessment and management process. Many
current regulatory risk aspects are identified, assessed and managed
by our company, e.g. adoption of carbon price penalty/tax in
countries where we operate or invest such as Thailand, Myanmar,
and Australia, etc.
Emerging
regulation
Relevant,
always
included
Emerging regulation is classified as a regulatory related risks both
current and emerging regulation are one of the key business areas
under our climate risk assessment and management process. Many
emerging regulatory risk aspects are identified, assessed and
managed by our company, e.g. restrictions and increased regulation
of flaring activities, new developments required to sequester GHG
emissions, national adaptation framework development etc. in
countries where we operate or invest such as Thailand, Myanmar
and Australia, etc.
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Technology Relevant,
always
included
Technology related risks are already integrating and merging with
the market risks assessment e.g. increase in alternative energy, and
decreased fossil fuel investment etc.
Legal Relevant,
always
included
Legal related risks are already considered integrating and merging
with the regulation risks assessment e.g. adoption of carbon price
penalty/tax in countries where we operate or invest such as Canada,
Australia and Algeria etc.
Market Relevant,
always
included
Market related risk aspects that included in the assessment are, e.g.,
adaptation of cap and trade regime, increase in alternative energy,
increase in insurance costs and decreased fossil fuel investment etc.
Reputation Relevant,
always
included
Reputation risk is integrated into market and regulatory related risk.
An increasing focus on energy efficiency regulations and renewable
energy targets by government, as well as an increase in low carbon
based investment , is likely to drive further change in energy
demand. For example, “low carbon” supply chain initiative as well as
“low carbon” city and municipalities is identified as market risk which
may impact to company reputation in case our portfolio remains
focus on exploration, extraction, production and development of
petroleum products and not transform to low carbon or renewable
energy.
Acute
physical
Relevant,
always
included
The acute physical risks e.g. increases and decrease in precipitation,
increases and decrease in evaporation and humidity, tropical
cyclones, flooding and water availability are integrated in the
assessment by considered in term of the developed climate
variables. The acute physical risks could impact to our operations i.e.
the possibility of significant damage to infrastructure and long term
disruption to operations through changing cyclonic events and
seasonal periods as well as an accessibility to our facilities both
onshore and offshore.
Chronic
physical
Relevant,
always
included
The chronic physical risks e.g. increase or decrease of temperature,
are integrated in the assessment by considering in term of the
developed climate variables. The chronic physical risks could impact
to our operations i.e. disrupting infrastructure and operations through
efficiency loss or increased failure rates of equipment and
infrastructure due to changes in temperature and acidity for example.
Upstream Not relevant,
explanation
provided
The PTTEP’s major activities are related to oil and exploration and
production which is classified as an upstream business of oil and gas
industry. Therefore, upstream can be considered as non-material risk
of PTTEP.
Downstream Relevant,
always
included
Downstream related risks are already considered integrating and
merging with the regulation risks assessment e.g. carbon offset and
emission reduction regimes, increase in alternative energy and
decrease in fossil fuel investment etc.
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C2.2d
(C2.2d) Describe your process(es) for managing climate-related risks and
opportunities.
PTTEP has operations in various countries. Some are subject, at a national level, to emission
caps associated with the Paris Agreement. Although regulations concerning climate change are
still developing, we do consider climate change risks & opportunities and financial implications
of operating and investing in carbon-constrained countries such as Canada, Australia, and
Algeria. On a company level the Environment Management Department is responsible for
implementing risk/opportunity assessment. The SD-SSHE Council approves the results of the
risk assessment and then the results are incorporated into the company wide (enterprise)
risk. It is the Environment Management Department’s responsibility to update the company-
wide mitigation plans on a quarterly basis. PTTEP evaluated its country-level risk profile by
performing a Climate Change Risk Assessment (CCRA) on all countries of its
operations. Climate change opportunities were also evaluated in the CCRA. Our risk profile
indicated that the company is not yet exposed to significant climate change related risks. Risks
and opportunities are also evaluated every five years or once new asset acquired and
monitored the mitigation quarterly via PTTEP’s SAP GRC system by corporate risk
management team and risk management committee. At asset level, PTTEP’s operations are
mainly located in Thailand and around the world. The nature of the E&P business facilities are
mainly composed of several wellheads in the same region, hence our asset-level risk
assessment is defined by region rather than individual facilities. PTTEP performed a CCRA to
evaluate both risks and opportunities at an asset level. Monitoring of the risk is done by the
Corporate Environment Management Department in conjunction with the asset group. For
example, when “swell impact on production and wellhead platforms” as a physical risk is
identified. The determination of likelihood (Rare, Unlikely, Possible, and Likely) and financial
impact (2 - 20, 20 - 200, 200 - 2,000, and >2,000 MMUSD) based on PTTEP’s internally
developed risk matrix is consequently assessed. As all assessed climate related risks of
PTTEP are under medium to low level, therefore, the actions is to maintain our existing
mitigation measures and performance. It is also required to closely monitor and re-assess once
any significant change occurred. For regulatory and market (financial) risks, 'increased
insurance costs & decreases fossil fuel investment’ as an example, the risk determination
process is similar to the physical risk. Changes to insurance costs and fossil fuel investment
could impact the industry and PTTEP, although the fossil fuel divestment is expected to have a
lesser impact on PTTEP. Increases in insurance costs are expected to impact PTTEP Thailand
offshore assets as well as Canada where insurance premium increases will have an impact on
overall revenue. We strive to bring all risks to the ALARP (as low as reasonably practicable)
threshold level. The identified risk and opportunities will be quarterly monitored as mentioned in
the above paragraph. For regulatory and market (financial) risks, “increased alternative energy
adoption’ as an example, the risk determination process is similar to the physical risk. In
addition, PTTEP has explored investment opportunities in potential new business to enhance
the company’s competitiveness and future sustainable growth. The opportunities considered is
also included the investment on renewable energy. PTTEP also has established new
organization to study transformation opportunity of our business including R&D section to
develop i.e. carbon high value products, carbon capture and utilization from waste/excess/flare
gases. One of their missions is focused on new business development and diversification.
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C2.3
(C2.3) Have you identified any inherent climate-related risks with the potential to have
a substantive financial or strategic impact on your business?
Yes
C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.
Identifier
Risk 1
Where in the value chain does the risk driver occur?
Direct operations
Risk type
Transition risk
Primary climate-related risk driver
Policy and legal: Other
Type of financial impact
Increased operating costs (e.g., higher compliance costs, increased insurance
premiums)
Company- specific description
Our Mariana Oil Sands asset in Alberta is currently under PTTEP’s operational control
and in the exploration phase with the target of first steam within the next 5-10 years.
Therefore, the impact is mainly depend on emission during production phase which is
not yet clear and then considered as long-term and at low risk. Alberta’s current climate
change policy includes CAD $30/tonne tax on emissions over 100,000 tonnes of
greenhouse gas annually. There is a possibility that the limit of greenhouse gas
emissions may be lowered or the taxation amount to increase, leading to a higher
operating cost for PTTEP. For example, impact calculated at $30CAD/tonne with
400,000 tCO2/year emission, therefore, emissions over 100,000 tonnes = 300,000
tCO2/year which is eligible for tax at exchange rate $1CAD=23.5 THB, thus potential
financial impact = 211,500,000 THB
Time horizon
Long-term
Likelihood
Virtually certain
Magnitude of impact
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Low
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
211,500,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
Impact calculated at $30CAD/tonne with 400,000 tCO2/year emission (emissions over
100,000 tonnes = 300,000 tCO2/year which is eligible for tax at exchange rate
$1CAD=23.5 THB, thus potential financial impact = 211,500,000 THB ), however,
unlikely to be implemented with preference for trading scheme.
Management method
PTTEP follows Company Risk Management Procedure to mitigate this risk. Apart from
using the carbon price in our Mariana economic model, PTTEP has included carbon
price policy into Environmental Management Standard to anticipate future tax burden
and reduce the tax liability. In 2018, we have continued studying on the potential
implementation and impact of carbon price to our operation. The mitigation schemes to
reduce GHG emission was evaluated to compare with paying of carbon tax by using
carbon pricing concept. For example, in case Carbon Capture and Storage (CCS) is
implemented to be zero continuous flaring reduction, investment cost of this mitigation
will be of 30 MMUSD approx. (1 USD = 32 THB, then = 960,000,000 THB). In addition,
carbon tax risk included into organization risk management and green practice strategy
which dictates greenhouse gas reductions initiatives, energy efficiency improvement and
other carbon offsetting schemes into our operations.
Cost of management
960,000,000
Comment
Identifier
Risk 2
Where in the value chain does the risk driver occur?
Direct operations
Risk type
Transition risk
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Primary climate-related risk driver
Policy and legal: Other
Type of financial impact
Increased operating costs (e.g., higher compliance costs, increased insurance
premiums)
Company- specific description
We considered impact of carbon taxes and cap and trade mechanisms, including
internal emissions reduction requirements in the future (expected not occur within 5
years). PTTEP is prepared to respond to a carbon emissions cap or a carbon emissions
market in Thailand which could be leading to a higher operating cost for PTTEP or
impact to our ability and strategy on diversification to renewable energy within the short
period.
Time horizon
Long-term
Likelihood
Very likely
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
360,000,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
Impact is calculated based on emission exceeding government ceiling. Estimated
amount of emission for Thailand assets is 1.8 million tCO2/year with carbon price of 200
THB per tCO2 emitted.
Management method
PTTEP wants to be proactive in engaging in the carbon market. For example, it has
already been involved in the creation of the Sao-Thien A (oil field) Flare Gas Recovery
and Utilization Project as a CDM project. Currently, PTTEP has been certified by
UNFCCC. We also keep on tracking of carbon tax scheme development with the
government by e.g. attend the meetings/workshops to be proactive in the government
directions and policies.
CDM Management at Sao Thien A is approximately 2 MM USD (60 MM THB) per year.
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This is calculated based on the estimated lifting cost 0.014 MM THB/day which is
derived from i.e. production operations cost, facility maintenance & inspection cost and
well services, 1 USD = 32.31 THB
Cost of management
2,300,000,000
Comment
Identifier
Risk 3
Where in the value chain does the risk driver occur?
Direct operations
Risk type
Physical risk
Primary climate-related risk driver
Acute: Increased severity of extreme weather events such as cyclones and floods
Type of financial impact
Reduced revenue from decreased production capacity (e.g., delayed planning
approvals, supply chain interruptions)
Company- specific description
Swell impact on production and wellhead platforms from cyclonic events can be
occurred. Swell height increases associated with increased tropical cyclone severity
may exceed the current production platform design basis for offshore assets e.g. Arthit,
Bongkot and Zawtika. Following to swell projections, this event is not expected be
occurred before 2030. However, the swell height projections are reviewing every 2
years. In case that assessment of probability of the swell height will reach or exceeding
platform height, management of potential impact require shut down of operations and
jacking up of structures to increase height.
Time horizon
Long-term
Likelihood
Unlikely
Magnitude of impact
Medium-high
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
PTT Exploration & Production Public Company Limited CDP Climate Change Questionnaire 2019 Monday, August 5, 2019
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Potential financial impact figure (currency)
1,890,000,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
Based on assumption that Thailand offshore operations are disrupted 7 days, financial
impact is approx. 270 MMTHB/day (revenue generated from natural gas sales in 2018 is
of 3,089 MMUSD or 98,848 MMTHB or 270 million THB/day which mainly represent
production cost of offshore assets in 2018)
Management method
Currently, main platforms are designed to perform operations with swell projections
within tolerable limits and with contingency of having 1-2 meters greater than design
basis.
Following to swell projections, this event will not be occurred before 2030. However, the
swell height projections are reviewing every 2 years . Monitoring of the risk is done by
the Corporate Environment Management Department in conjunction with the asset
group. In case that assessment of probability of the swell height will reach or exceeding
platform height, management of potential impact require shut down of operations and
jacking up of structures to increase height.
Cost of management
7,000,000,000
Comment
Identifier
Risk 4
Where in the value chain does the risk driver occur?
Direct operations
Risk type
Transition risk
Primary climate-related risk driver
Reputation: Stigmatization of sector
Type of financial impact
Reduction in capital availability
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Company- specific description
We consider potential risks which may impact our reputation and quantify it by potential
drop in share price basis points. Examples of past events that had a negative impact on
PTTEP’s share price was the accident at PTTEP’s Montara operations in production
phase. Other potential incidents that could affect PTTEP’s reputation include oil spills,
accidents and other major environmental disasters.
Time horizon
Medium-term
Likelihood
Likely
Magnitude of impact
Medium-high
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
516,000,000,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
In August 2009, PTTEP experienced an accident at its Montara operations in Australia.
This resulted in share price plunging down from THB 180 to a new low of 50 at the end
of 2009 with total 3,969,985,400 shares. The potential impact on PTTEP share price if
such incidents were to happen is anticipated to be at approximately 516,000,000,000 or
-70% of total share price.
Management method
Ensure to enhance brand image with good reputation in the eyes of stakeholders,
communities and the public, and educate the public on energy literacy. PTTEP will
continue to ensure the transparency of our sustainability performance through our
annual reports. Cost of management is estimated of 20 MMUSD or 660 MMTHB. This is
the current budget to improve PTTEP’s branding and image. It also includes media,
advertising and public relations as well as philanthropy, CSR and social investment
projects.
Cost of management
660,000,000
Comment
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Identifier
Risk 5
Where in the value chain does the risk driver occur?
Direct operations
Risk type
Transition risk
Primary climate-related risk driver
Market: Changing customer behavior
Type of financial impact
Reduced demand for goods and/or services due to shift in consumer preferences
Company- specific description
Global trends focus more and more on climate change issues and their mitigations and
adaptation, leading to higher demand of other energy forms, i.e. renewable energy. This
global trend results to a changing in our end-user or customer behavior to focus more
on low carbon energy or renewable energy. This will reduce demand for our goods,
hydrocarbon energy, due to shift in consumer preferences.
Time horizon
Long-term
Likelihood
Likely
Magnitude of impact
Medium
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
700,000,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
700 MMTHB was estimated based on assumption that change to alternative fuels by
2050 likely to have a 10% impact on production demand.
Management method
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Natural gas is as a transition fuel which can mitigate climate change impact by less
carbon emission than coals and other fossil fuels. PTTEP short term strategy is to
increase gas proportion of company portfolio by acquiring new investment in gas fields
such as Mozambique Rovuma Offshore Area 1 project which is large natural gas field
located offshore of Mozambique. In addition, PTTEP has established new organization
who is responsible for technology research & development. One of their missions is
focused on new business development and diversification. We are focusing on three
main businesses including
1) businesses in the natural gas value chain, such as gas turbine power plants (Gas to
Power) or LNG related businesses;
2) commercialization of technological innovation projects developed within PTTEP,
including Robotics and AI, and Predictive Maintenance; and
3) Renewable Energy.
For example, PTTEP is developing a project by using our waste stream like flare gas to
create new product, i.e. carbon high value product. For example, CO2 conversion to
high valued products, e.g. methanol, carbonate-based product, etc. is one of the on-
going projects. To develop and realize these projects until success of pilot unit, capital
investment of 15 MMUSD or 480MMTHB is required.
Cost of management
480,000,000
Comment
C2.4
(C2.4) Have you identified any climate-related opportunities with the potential to have
a substantive financial or strategic impact on your business?
Yes
C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have a
substantive financial or strategic impact on your business.
Identifier
Opp1
Where in the value chain does the opportunity occur?
Direct operations
Opportunity type
Energy source
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Primary climate-related opportunity driver
Participation in carbon market
Type of financial impact
Reputational benefits resulting in increased demand for goods/services
Company-specific description
With an expectation on the carbon trading system in Thailand in near future that will
result in the requirement of more carbon credits, PTTEP considers the opportunity to
develop more carbon credits e.g. initiated the Sao-Thien A oil field Flare Gas Recover
and Utilization Project as our first CDM project and also improve on our operations by
being more energy efficiency which also reduces our GHG emissions. Selling carbon
credits also provides extra revenue and also promotes PTTEP’s image as an energy
efficiency and environmentally conscientious company.
Time horizon
Long-term
Likelihood
Likely
Magnitude of impact
Medium-low
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
5,100,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
It was calculated based on annual operating cost at approximately 5.14 MMTHB from
for the Sao-Thien A oil field Flare Gas Recovery and Utilization Project.
Strategy to realize opportunity
The strategy to realize opportunity is to proactively engage in the carbon trading market.
For example, PTTEP initiated the Sao-Thien A oil field Flare Gas Recover and
Utilization Project as our first CDM project. The anticipated CERs from the project is
approximately 17,000 tCO2e/yr with T-VER CER price of 200 THB/tCO2e (over 8 years)
which is approximately 3.4 Million THB per year.
Cost to realize opportunity
3,400,000
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Comment
Identifier
Opp2
Where in the value chain does the opportunity occur?
Customer
Opportunity type
Products and services
Primary climate-related opportunity driver
Shift in consumer preferences
Type of financial impact
Better competitive position to reflect shifting consumer preferences, resulting in
increased revenues
Company-specific description
Climate change may drive consumers towards higher consumption of natural gas to
replace fuels such as coal and lignite. Natural gas is a key fuel source in the transition
towards a low-carbon economy. PTTEP could gain more revenues from its natural gas
bias portfolio strategy which currently is 59 % by revenue.
Time horizon
Long-term
Likelihood
More likely than not
Magnitude of impact
High
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
98,848,000,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
3,089 MMUSD or 98,848 MMTHB. The financial implication is the revenue generated
from natural gas sales in 2018.
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Strategy to realize opportunity
PTTEP continues to focus on natural gas exploration and production. Our portfolio
already has a natural gas bias, which currently is 59 % by revenue. In addition, the more
energy we save means the less fuel gas is needed, which results in more gas available
for sale. Our energy efficiency target, a 5% reduction by 2020 based on 2012 base year,
is part of the effort to reduce our fuel gas consumption. For example, the Arthit seawater
pump optimization resulted in savings of 78 MMSCF, and the Sirikit Heat Recovery
Steam Generator saved 166 MMSCF in 2018.
The annual cost is estimated by taking the total operating and capital expenses (at
3,614 MMUSD or 115,648 MMTHB) multiplied by the revenue proportion of natural gas
in PTTEP’s portfolio (59%).
Cost to realize opportunity
68,232,000,000
Comment
Identifier
Opp3
Where in the value chain does the opportunity occur?
Direct operations
Opportunity type
Products and services
Primary climate-related opportunity driver
Development of new products or services through R&D and innovation
Type of financial impact
Increased revenue through demand for lower emissions products and services
Company-specific description
Oil and gas upstream business like PTTEP is to adapt and maintain organization during
climate change crisis of which fossil fuel production is a major cause.
PTTEP has established new organization to study transformation opportunity of our
business including R&D section to develop i.e. carbon high value products (e.g.
methanol, carbonate-based product, etc), carbon capture and utilization from
waste/excess/flare gases. One of their missions is focused on new business
development and diversification.
Time horizon
Long-term
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Likelihood
Likely
Magnitude of impact
High
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
12,215,000,000
Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
The financial impact was calculated by estimated revenue generated from potential low
carbon R&D products and services. However, total number cannot be provided in
detail since it is under our research and development phase
Strategy to realize opportunity
New business unit has been established to emphasize on business transformation
including technology development. PTTEP’s R&D division has studied many innovative
projects in which green practice is one of the key themes to be focused. For example,
CO2 conversion to high valued products, e.g. methanol, carbonate-based product, etc.
is one of the on-going projects. To develop and realize these projects until success of
pilot unit, PTTEP has allocated company budget of at least 3% of annual net profit or 15
MMUSD or 480MMTHB.
Cost to realize opportunity
480,000,000
Comment
C2.5
(C2.5) Describe where and how the identified risks and opportunities have impacted
your business.
Impact Description
Products and
services
Not yet
impacted
Global trends focus more on climate change issues and their mitigations
and adaptation, leading to higher customer demand of other energy
forms, i.e. renewable energy, instead of fossil fuel. However, this is
expected to be occurred in more than next 10 years as natural gas
which is a kind of fossil fuel is still as a transition fuel which can mitigate
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climate change impact by less carbon emission than coals and other
fossil fuels.
Supply chain
and/or value
chain
Not yet
impacted
Both physical and market risk may impact to company supply chain, e.g.
disruption to supply chain (product transportation) from water flooding
and sand storm. However, we do not expect this impact to occur within
10 years.
Adaptation
and mitigation
activities
Impacted According to global crisis on climate change as well as Intended
Nationally Determined Contributions (INDC) and Paris Agreement
PTTEP as an oil and gas exploration and production company will be
impacted by the climate change issues in case the adaptations and
mitigations are not implemented in advance. With this regard, PTTEP
aims to proactively reduce our GHG emission which is in line with
Thailand target by setting target to reduce 25% of GHG intensity by
2030 comparing to base year 2012. PTTEP has initiated and continually
implemented GHG reduction projects since 2013. These projects create
significant amount of not only cost saving but also revenue generation to
company.
Investment in
R&D
Impacted Due to global climate change situation leading to alternative energy
adoption, i.e. renewable energy, PTTEP as an oil and gas exploration
and production company will be impacted from this transition to low
carbon society in case new technologies and new business
opportunities are not developed for future trend. With this regard,
PTTEP has established Research and Technology Division since 2013
to deal with enhancing more production, exploration success and green
practice. One of the key objectives of new organization is to explore new
business opportunity including low carbon technology. PTTEP has
allocated company budget of at least 3% of annual net profit . It includes
new technologies and capability of the Company’s research and
development program.
Operations Not yet
impacted
The identified physical risks have potential to impact to PTTEP
operations, e.g. swell impact on production and wellhead platform, etc.
However, the design basis of existing operations is still valid, with
expected climate conditions. In some instances, changes to certain
variables by 2030 are within the design threshold.
Other, please
specify
Not
impacted
There is no more other risk and opportunity impacts to our business.
C2.6
(C2.6) Describe where and how the identified risks and opportunities have been
factored into your financial planning process.
Relevance Description
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Revenues Not yet
impacted
The identified risks probably impact to PTTEP revenues. The
physical risks, e.g. cyclone, swell, flooding, etc. will impact on
operation reliability which shorten operating days resulting in
loss of revenue. In addition, market risk such as global trend on
low carbon product leads to change of customer behavior and
consequently would place a price on carbon emissions
impacting business revenue. However, we do not expect this
impact to occur within 10 years.
Operating costs Not yet
impacted
The identified risks probably impact to PTTEP operating costs.
The physical risks, e.g. cyclone, swell, flooding etc. will impact
on operating costs. In addition, regulatory risk such as
restrictions and increased regulation of flaring activities would
limit flaring activities and require PTTEP to manage gas through
sequestration or capture and reuse/on-sale and consequently
increase operating costs. However, we do not expect this impact
to occur within 10 years.
Capital
expenditures /
capital
allocation
Not yet
impacted
The identified risks probably impact to PTTEP capital
expenditures/capital allocation. The market risk such as
decreased in investment in fossil fuel based enterprises lead to
greater difficulties for PTTEP to finance new investments.
However, we do not expect this impact to occur within 10 years .
Acquisitions
and
divestments
Impacted for
some suppliers,
facilities, or
product lines
The identified risks impact to PTTEP acquisitions and
divestments. The market risk such as decrease in investment in
fossil fuel based enterprises while low carbon investment
initiative increases, impacts to PTTEP acquisitions and
divestments direction/decision. Prior to any acquisition and
divestment, PTTEP takes the climate related information e.g. its
objective, target, performance and relevant regulatory etc., as
part of SSHE Management System into consideration and
decision. However, the magnitude of impact still limit with low
significant due to potential impact from identified risks is not
expected to occur within 10 years
Access to
capital
Not yet
impacted
The identified risks probably impact to PTTEP access to capital.
The market risk such as decreased in investment in fossil fuel
based enterprises lead to greater difficulties for PTTEP to
access to capital. However, we do not expect this impact to
occur within 10 years .
Assets Not yet
impacted
The identified risks probably impact to PTTEP assets. The
physical risks such as humidity, acidity, extreme weather
conditions which may lead to, e.g. corrosion of infrastructure and
piping, reduced performance or degradation of
equipment/machine such as air cooler, electrical systems, power
and gas turbine, etc. will impact on assets value and resulting in
asset depreciation. In addition, market risk such as global trend
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on low carbon product leads to change of customer behavior
and demand-side impacting hydrocarbon product price which
reflects to asset value. However, we do not expect this impact to
occur within 10 years.
Liabilities Not yet
impacted
The identified risks probably impact to PTTEP liability. The
physical risks such as humidity, acidity, extreme weather
conditions which may lead to, e.g. corrosion of infrastructure and
piping, reduced performance or degradation of
equipment/machine will impact on operations integrity and may
leading to leak, spill, or release of pollutants to the environment.
In addition, the regulatory risk such as restrictions and increased
regulation of flaring activities would limit flaring activities and
require PTTEP to manage gas through sequestration or capture
leading to liability risk from leak, damage, release of captured
carbon to the environment. However, we do not expect this
impact to occur within 10 years.
Other Not yet
impacted
There is no more other risk and opportunity to be factored into
our financial process.
C3. Business Strategy
C3.1
(C3.1) Are climate-related issues integrated into your business strategy?
Yes
C3.1a
(C3.1a) Does your organization use climate-related scenario analysis to inform your
business strategy?
Yes, qualitative and quantitative
C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-
FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-
TO3.1b/C-TS3.1b
(C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-
PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b) Indicate whether your organization has
developed a low-carbon transition plan to support the long-term business strategy.
Yes
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C3.1c
(C3.1c) Explain how climate-related issues are integrated into your business
objectives and strategy.
Starting from the top-influencing, climate-related issues are integrated into PTTEP business
objectives and strategy, vision and mission, policy, and work practices as describe below.
Vision: Energy Partner of Choice through competitive performance and innovation for long-
term value creation.
Mission: PTTEP operates globally to provide reliable energy supply and sustainable value to
all stakeholders.
SD Policy, Guideline, and Strategy
The Sustainable Development (SD) GROWTH policy elaborates on doing business sustainably
by being a high performing, responsible, ethical and value creating organization. The SD
Guideline is composed of three parts: business, wider society, and environment, and includes a
guideline on Green Practice, in which low carbon organization is one of the targets.
SSHE Policy
PTTEP places SSHE as a core value and adheres to safe operating standards to ensure
operational and process safety, the health of everybody involved in our operations and
communities in which we operate, environmental protection in all stages of the business life
cycle, and security of our people and assets. Regarding climate change, PTTEP commits to
reduce greenhouse gas emissions aligning with a pathway to a low carbon future.
In addition, the SD Roadmap serves as a company strategy towards sustainability by including
Green Practice Roadmap, Business Strategic Roadmap and Wider Society Roadmap.
Green Practice Roadmap and Elements in the SD Guideline include targets and expectations
on the following topics: Climate Change, Energy Efficiency, Water Related Management,
Releases to the Environment, Biodiversity, Waste Management, Environmental Impact
Management, Decommissioning, Green Supply Chain: Green Procurement, Green Logistics,
and Green Technology.
Aspects of climate change that have influenced business strategy: PTTEP's vision to adopt
Green Practices has resulted in a development of Green Practice Roadmap which was
approved by the SSHE-SD Council. The Low Carbon Roadmap - part of the Green Practice
Roadmap - aims to reduce and offset GHG emissions from our operations via various
initiatives. This is also expanding into international areas where there are climate change
regulatory risks involved, such as carbon tax; and to create competitive edge. PTTEP has set
both medium term (2030), short term (2020) and annual targets on climate change to reduce
GHG emissions. Thus, the business strategy has been changed to be more focus on doing
business responsibly by mitigating environmental impacts, reducing our GHG emissions from
operations, aspiring to become a low carbon organization, as well as continuous monitoring of
risks arising from climate change.
PTTEP’s climate change risk assessment covers reputational, market, regulatory, physical
risks, and opportunities to develop into a green business. The period of assessment are
covered three parts: 2014-2015 (short term), 2030 (medium term) and 2050 (long term).
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For short term strategy, the most important components that have been influenced by climate
change include the following:
- Operational practices : include the adaptation of SD Guideline & Green Practices in PTTEP’s
operations.
- Business Communication : PTTEP focuses on adopting green office, green meeting &
trainings, and communication of our green practice to all stakeholders.
- CSR strategies & voluntary programs to focus more on contributing to our low carbon target
and practices, e.g. reforestation, energy efficiency programs awareness building for internal
and external stakeholders. PTTEP also established the short term target setting of 20%
intensity emission reduction by 2020 compared with 2012 as base year. Moreover, PTTEP has
set an annual emissions reduction target as of 2018 at 220,500 tCO2e.
For medium term strategy, the most important components that have been influenced by
climate change include the following:
- Change in company's vision, mission, corporate values, and brand identity
- Change in long term business strategies to focus more on low carbon operations
opportunities, e.g. elimination of continuous flare gas in new significant assets & acquisitions,
carbon credits opportunities, future operational concepts and designs on facilities to reduce
GHG emissions.
- Due to climate change risks &opportunities, we aim to find opportunities to diversify our
portfolio, e.g. more natural gas, and research into low carbon technologies to prepare ourselves
for the next 20 - 50 years.
- Incorporate new technologies into operating processes and studies for new technologies to
help reduce GHG emissions and improve energy efficiency in operations and offices.
- Knowledge Management &Technology - has been influenced by climate change to study
more on new innovations and technologies to reduce GHG emissions, removals (Carbon
Sinks), and energy efficiency practices to be implemented in the company.PTTEP also
established the medium term target setting of 25% intensity emission reduction by 2030 from
2012 base year.
Strategic Advantage
In terms of strategic advantage, PTTEP is presented with an overview of the world’s energy
outlook and potential preparations for future global trends and environmental changes, e.g.
regulatory changes, physical risks and market risks. We have also seen our potential
opportunities resulting from climate change, e.g. seek new opportunities to invest in renewable
energy to promote alternative energy during the phase of changing energy sources to low
carbon society, innovation development on high-value products from carbon capture and
utilization.
We are also certified our first batch of carbon credits under the CDM in 2015. Our strategic
advantages include integration of management of carbon emissions into core business
strategies, climate change-thinking framework into investment opportunities to encourage
performance improvements; managing carbon emissions and; protecting business assets from
climate change impacts to achieve sustainability and in effect, creating strong shareholder
returns. Additionally, by moving into countries without well-developed climate change policies
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PTTEP has the potential to set itself up as an example for that country to develop greener
policies.
The most substantial business decisions made. While Thailand operational emissions would
not be subject to direct regulation in the foreseeable future, we may experience increased costs
if direct carbon taxes or mandatory emission caps are imposed. For these reasons, we became
involved with T-VER development since 2013 and initiated a project under CDM since 2015.
We remain committed to managing climate change risks and direct opportunities to improve
energy efficiency and reduce carbon footprint from our business.
C3.1d
(C3.1d) Provide details of your organization’s use of climate-related scenario analysis.
Climate-
related
scenarios
Details
Other, please
specify
The PTTEP climate adaptation assessment is focused on evaluating risks to
PTTEP’s operational control assets according to current climate projections for 2015
(short-term), 2030 (medium-term) and 2050 (long-term) across a series of climate
variables. To undertake the study a number of data sources were utilized, i.e. KNMI
Climate Explorer, Climate Wizard, UNEP Global Risk Data Platform, Aqueduct, and
IPCC Fifth Assessment Report, representing a cross section of the latest scientific
peer reviewed data available. The range in potential outcome reflects the degree of
uncertainty between RCP and IPCC GCMs (General Circulation Models) and using a
multi-model assemble base on either RCP 4.5 or RCP8.5. This includes variables
such as mean temperature and precipitation, ocean acidity, mean evaporation and
humidity as well as extreme events such as tropical cyclones and wild fires. A
number of risks and potential management options were identified in relation to
extreme events that are currently uncertain with respect to the expected magnitude of
change in 2030 and 2050. The projection for 2030 and 2050 dates provides an
indication of changes that is likely to coincide with the PTTEP end of production in
several assets and impact future assets in exploration or yet to be identified. The
risks were assessed in 3 key areas of business: physical, regulatory and market
risks. The results of conducted scenario analysis revealed that no risk to operational
assets from the existing climate condition in 2015. Moreover, changes to certain
climate variables by 2030 are with in the design threshold. However, the asset design
is insufficient with respect to the predicted changes in 2050.
The preliminary climate change risk assessment with mitigation plan, after
endorsement by the SD -SSHE Council has been included into the
Enterprise/Company-wide risk management process. For Enterprise Risk
Management System, PTTEP uses the SAP program to integrate, assess, analyze,
monitor, and report all risks into the enterprise risk where it can be monitored,
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followed up the mitigation progress by the risk holders, and also by the company’s
central risk functions.
The direct influence of the scenario analysis results, for example, is in term of
integration of the result into the company climate related goal and targets, e.g. our
roadmap to become the low-carbon footprint organization, more ambitious target of
GHG emission intensity reduction at least 25% by 2030 relatively to 2012 base year,
5% Energy intensity reduction by 2020 relatively to 2012 base year. This is also
directly influenced our business objectives and strategy to explore investment
opportunities in potential new business to enhance the company's competitiveness
and future sustainable growth. This included an increase in natural gas bias and
renewable energy portfolio. The identified scenarios are also applied in PTTEP
Climate Change Risk Assessment.
C-AC3.1e/C-CE3.1e/C-CH3.1e/C-CO3.1e/C-EU3.1e/C-
FB3.1e/C-MM3.1e/C-OG3.1e/C-PF3.1e/C-ST3.1e/C-TO3.1e/C-
TS3.1e
(C-AC3.1e/C-CE3.1e/C-CH3.1e/C-CO3.1e/C-EU3.1e/C-FB3.1e/C-MM3.1e/C-OG3.1e/C-
PF3.1e/C-ST3.1e/C-TO3.1e/C-TS3.1e) Disclose details of your organization’s low-
carbon transition plan.
As upstream oil and gas sector, PTTEP’s mission is to provide reliable energy supply and
sustainable value to all stakeholders. A key energy source produced from PTTEP operation is
natural gas which is defined as cleaner energy compared to coal for electricity production.
PTTEP aims to increase company gas/oil ratio from 65% to 70% by investing more in gas field,
e.g. Mozambique Rovuma Offshore Area 1 Project, etc. In addition, we have studied many
R&D projects including low carbon projects e.g. high valuable product from waste gas,
renewable energy production, and energy storage, etc. which potentially are the new venture of
company.
C4. Targets and performance
C4.1
(C4.1) Did you have an emissions target that was active in the reporting year?
Intensity target
C4.1b
(C4.1b) Provide details of your emissions intensity target(s) and progress made
against those target(s).
Target reference number
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Int 1
Scope
Scope 1+2 (location-based)
% emissions in Scope
100
Targeted % reduction from base year
25
Metric
Other, please specify
tonne CO2e per 1000 tonne of product
Base year
2012
Start year
2017
Normalized base year emissions covered by target (metric tons CO2e)
5,041,074
Target year
2030
Is this a science-based target?
Yes, we consider this a science-based target, but this target has not been approved as
science-based by the Science Based Targets initiative
% of target achieved
28.8
Target status
Underway
Please explain
In early 2017, PTTEP has established medium term GHG intensity reduction target by
25% in 2030 compared with 2012 base year. This target covering 100% all operating
assets under PTTEP operational control is complied with 2 degrees Celsius scenario for
energy sector identified by International Energy Agency (IEA). In addition, in 2050
PTTEP intends to implement zero continuous flare policy as committed in SD guideline.
% change anticipated in absolute Scope 1+2 emissions
-47
% change anticipated in absolute Scope 3 emissions
0
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Target reference number
Int 2
Scope
Scope 3: Processing of sold products
% emissions in Scope
71
Targeted % reduction from base year
20
Metric
Other, please specify
tonne CO2e per 1000 barell oil equivalent
Base year
2012
Start year
2018
Normalized base year emissions covered by target (metric tons CO2e)
3,167,000
Target year
2030
Is this a science-based target?
Yes, we consider this a science-based target, but this target has not been approved as
science-based by the Science Based Targets initiative
% of target achieved
66
Target status
New
Please explain
PTTEP’s sole customer for natural gas product is PTT which has set new target in 2018
to reduce GHG intensity emission at 20% by 2030 from 2012 as base year. Therefore,
this target is also cascaded to PTTEP natural gas product sold to PTT.
PTTEP natural gas supplied to PTT was contributed at approx. 27% (as of 2018) of total
gas , therefore, the normalized base year emissions covered by target calculated at
27% of total 2012 base year emission at 11,730,000 tonneCO2e or equal to 3,167,000
tonneCO2e .
% change anticipated in absolute Scope 1+2 emissions
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0
% change anticipated in absolute Scope 3 emissions
1.3
C4.2
(C4.2) Provide details of other key climate-related targets not already reported in
question C4.1/a/b.
Target
Energy usage
KPI – Metric numerator
Target set by GJ
KPI – Metric denominator (intensity targets only)
Target set by 5% reduction in intensity (GJ/tonne production)
Base year
2012
Start year
2013
Target year
2020
KPI in baseline year
1.42
KPI in target year
1.34
% achieved in reporting year
0
Target Status
Underway
Please explain
Due to our field matured, the energy consumption for operation relatively increase when
compared to base year.
Part of emissions target
the Energy Usage target is part of an emissions reduction target (INT#2)
Is this target part of an overarching initiative?
No, it's not part of an overarching initiative
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C-OG4.2a
(C-OG4.2a) If you do not have a methane-specific emissions reduction target for your
oil and gas activities or do not incorporate methane into your target(s) reported in
C4.2 please explain why not and forecast how your methane emissions will change
over the next five years.
Methane emission reduction target is included in greenhouse emission reduction target
provided in C4.1b (Int 2) as the dominant greenhouse gas from PTTEP operation (composition
of our gas production consist methane more than 90% ). PTTEP target to reduct GHG intensity
emission by 25% within 2030 comparing to 2012 base year also resultsw in methane
emission reduction.
C4.3
(C4.3) Did you have emissions reduction initiatives that were active within the
reporting year? Note that this can include those in the planning and/or
implementation phases.
Yes
C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.
Number of
initiatives
Total estimated annual CO2e savings in metric
tonnes CO2e (only for rows marked *)
Under investigation 1 100,000
To be implemented* 4 29,500
Implementation
commenced*
0 0
Implemented* 10 269,476
Not to be implemented 0 0
C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the table
below.
Initiative type
Process emissions reductions
Description of initiative
Changes in operations
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Estimated annual CO2e savings (metric tonnes CO2e)
44,291
Scope
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
35,865,728
Investment required (unit currency – as specified in C0.4)
60,831,000
Payback period
1-3 years
Estimated lifetime of the initiative
6-10 years
Comment
PTTEP aims to reduce continuous flaring as much as possible. Continuous flaring is
accounted under scope 1 emissions. Since 2012 The Sao-Thien A Oil Field Flare Gas
Recovery and Utilization Project in Sukhothai, Thailand has been implemented, the
development of recovering and utilizing the associated gas emitted from Sao-Thien A oil
field. In the absence of the proposed project, the associated gas would have been flared
resulting in the release of GHG to the atmosphere. Investment required was calculated
using the values from the project’s PDD from the UNFCCC CDM website. The total
investment required was calculated by multiplying the operating cost by the lifetime of
the initiative, this value was then combined with the capital investment value to derive
the total investment required. Investment required was USD 1.88 M and was converted
using a rate of 32.31 THB per USD.
Initiative type
Energy efficiency: Processes
Description of initiative
Heat recovery
Estimated annual CO2e savings (metric tonnes CO2e)
10,559
Scope
Scope 1
Voluntary/Mandatory
Voluntary
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Annual monetary savings (unit currency – as specified in C0.4)
35,997,000
Investment required (unit currency – as specified in C0.4)
61,389,000
Payback period
1-3 years
Estimated lifetime of the initiative
3-5 years
Comment
In 2014, PTTEP installed Heat Recovery Steam Generator (HRSG) in Sirikit oil field, to
recover waste heat from compressors and utilize in steam boiler. In 2018, 10,559 tonnes
CO2 equivalent of GHG reduction was achieved. Investment required was USD 1.9 M
and was converted using a rate of 32.31 THB per USD.
Initiative type
Process emissions reductions
Description of initiative
New equipment
Estimated annual CO2e savings (metric tonnes CO2e)
25,497
Scope
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
86,864,902
Investment required (unit currency – as specified in C0.4)
698,542,200
Payback period
4 - 10 years
Estimated lifetime of the initiative
11-15 years
Comment
Trunk flow line project aims to reduce flaring at remote station of Sirikit Oilfield by
transporting excess gas through pipelines to be consolidated and reused at the main
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production facilities. The project started to operate in the 4th quarter of 2016. Investment
required was USD 21.62 M and was converted using a rate of 32.31 THB per USD.
Initiative type
Process emissions reductions
Description of initiative
Changes in operations
Estimated annual CO2e savings (metric tonnes CO2e)
141,284
Scope
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
514,939,035
Investment required (unit currency – as specified in C0.4)
323,100,000
Payback period
<1 year
Estimated lifetime of the initiative
6-10 years
Comment
Flash Gas Recovery Unit Project at Greater Bongkot South, Thailand -Emissions
reductions at the Flash Gas Recovery Unit fall under scope 1 emissions since the FGRU
is owned by PTTEP. Emissions reductions at the FGRU were voluntary. The flash gas
recovery unit project commenced in 2014. It recovers gas from condensate production
and puts it back into the gas production process which would otherwise be flared. In
2018, the recovery is equivalent to reduction of 141,284 tCO2e of GHG emissions.
Investment required was USD 10M and was converted using a rate of 32.31THB per
USD.
Initiative type
Low-carbon energy installation
Description of initiative
Other, please specify
Hybrid Wind Turbine & Solar Power System
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Estimated annual CO2e savings (metric tonnes CO2e)
1
Scope
Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
6,297
Investment required (unit currency – as specified in C0.4)
500,000
Payback period
>25 years
Estimated lifetime of the initiative
11-15 years
Comment
Since 2017, PTTEP initiated a project to supply an alternative energy to our operation in
Wat Tan-B wellsite and Bung-Pra depot by installing the Hybrid Wind Turbine & Solar
Power Generation System. This initiative can reduce the power demand from national
grid by 2099 kWh/year and can reduce CO2 emission at approx. 1.02 tCO2e/year.
Initiative type
Energy efficiency: Processes
Description of initiative
Process optimization
Estimated annual CO2e savings (metric tonnes CO2e)
5,914
Scope
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
14,943,977
Investment required (unit currency – as specified in C0.4)
0
Payback period
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<1 year
Estimated lifetime of the initiative
3-5 years
Comment
Optimization of sea water pump operation, PTTEP implemented the measure
summarized from the studies at Arthit Production platform by shutting down some of the
sea water pumps used to generate cooling water for other machines. No investment,
optimize operation and process condition required.
Initiative type
Low-carbon energy installation
Description of initiative
Solar PV
Estimated annual CO2e savings (metric tonnes CO2e)
0.3
Scope
Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
1,971
Investment required (unit currency – as specified in C0.4)
45,000
Payback period
21-25 years
Estimated lifetime of the initiative
3-5 years
Comment
Since 2018, PTTEP initiated a project to supply an alternative energy to lighting system
for guardhouse at wellsites by installing the LED lighting system supplied by solar cell.
This initiative can reduce the power demand from national grid by 657 kWh/year and
can reduce CO2 emission at approx. 0.32 tCO2e/year.
Initiative type
Other, please specify
Energy efficiency: marine logistic management
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Description of initiative
Estimated annual CO2e savings (metric tonnes CO2e)
40,718
Scope
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
78,659,306
Investment required (unit currency – as specified in C0.4)
904,680,000
Payback period
11-15 years
Estimated lifetime of the initiative
6-10 years
Comment
Emissions reductions for the marine transportation fleet were under scope 1 emissions
since all transportation involved was owned by PTTEP. In 2015, the company
expanded the New Marine Vessel project by increasing the efficiency of marine
transportation in the Gulf of Thailand. As a result, in 2018 the average fuel consumption
of each vessel has been reduced compared to 2012. Overall, PTTEP could reduce GHG
emission reductions of 40,718 tCO2e per year. Annual monetary savings in the original
currency was 1.4 MMUSD. Investment required was 28 MMUSD. These were converted
using a rate of 32.31 THB per USD.
Initiative type
Energy efficiency: Building services
Description of initiative
Lighting
Estimated annual CO2e savings (metric tonnes CO2e)
63
Scope
Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
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Annual monetary savings (unit currency – as specified in C0.4)
131,000
Investment required (unit currency – as specified in C0.4)
750,000
Payback period
4 - 10 years
Estimated lifetime of the initiative
3-5 years
Comment
In 2015 PTTEP has started to replace the lighting system with LED for the Songkla
Petroleum Support Base to improve the energy consumption efficiency. This project has
carried until present and has registered under the Low Emission Support Scheme
(LESS) of Thailand Greenhouse Gas Management Organization (Public Organization)
or TGO. From 2015-2018, it is certified that this project could save CO2 emission at
approx. 63 tCO2e/year. The investment required for LED lighting replacement is
approx. 750,000 THB/year. Annual monetary savings is 131,000 THB.
Initiative type
Process emissions reductions
Description of initiative
Changes in operations
Estimated annual CO2e savings (metric tonnes CO2e)
1,149
Scope
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
915,000
Investment required (unit currency – as specified in C0.4)
16,155,000
Payback period
4 - 10 years
Estimated lifetime of the initiative
6-10 years
Comment
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In mid 2018, PTTEP installed the gas ejector in Sirikit Oil Field to recover the low
pressure flare and return it back into the gas production process which would be
otherwise be flared. The cost for gas ejector installation is approx. USD 0.5 M and was
converted using a rate of 32.31. The recovery is of 17.9 MMSCF/year or equivalent to
reduction of 1,149 tCO2e of GHG emission.
Initiative type
Low-carbon energy installation
Description of initiative
Solar PV
Estimated annual CO2e savings (metric tonnes CO2e)
268.67
Scope
Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
800,000
Investment required (unit currency – as specified in C0.4)
7,000,000
Payback period
4 - 10 years
Estimated lifetime of the initiative
21-30 years
Comment
In August 2018, PSB Songkhla installed the solar cell rooftop mainly on the office
buildings to improve electrical efficiency and reduce environmental impact. The solar
cell on the rooftop of Office Buildings can distribute 181.04 kWh for 3-story
commercial/office buildings.
C4.3c
(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
Method Comment
Dedicated
budget for
In order to achieve our vision of being an energy partner of choice through
competitive performance and innovation for long-term value creation, this target has
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energy
efficiency
been included in the long term business strategy, and dedicated budgets for energy
efficiency are included in the corporate budget. We have also publicly disclosed our
intentions of reducing and offsetting our GHG emissions in which this serves as a
long term public commitment which drives initial investments into projects that can
reduce and offset GHG.
In addition, development of low carbon product are in PTTEP research &
development plan.
Other In order to achieve our vision of being an energy partner of choice through
competitive performance and innovation for long-term value creation , this target
has been included in the long term business strategy. The company wide target as
well as the key performance indicators are set. By incorporating into the long term
business strategy to become part of our company vision, investment budgets for
GHG emissions reductions and offsets are dedicated for this purpose. We have
also publicly disclosed our intentions of reducing and offsetting our GHG emissions
in which this serves as a long term public commitment which drives initial
investments into projects that can reduce and offset GHG. The company KPI is
then cascaded down to each individual employee, where monetary incentives such
as bonuses, monetary recognitions and awards are given to employees with the
best GHG emissions reduction project implementations and results.
C4.5
(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products or do they enable a third party to avoid GHG emissions?
Yes
C4.5a
(C4.5a) Provide details of your products and/or services that you classify as low-
carbon products or that enable a third party to avoid GHG emissions.
Level of aggregation
Company-wide
Description of product/Group of products
The use of natural gas instead of coal to generate electricity and as other power
sources.
Natural gas is a major source of electricity generation through the use of gas turbines
and steam turbines. Most grid peaking power plants and some off-grid engine-
generators use natural gas. Particularly high efficiencies can be achieved through
combining gas turbines with a steam turbine in combined cycle mode. Natural gas burns
more cleanly than other Hydrocarbon fuels, such as oil and coal, and produces less
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carbon dioxide per unit of energy released. For an equivalent amount of heat, burning
natural gas produces about 30% less carbon dioxide than burning petroleum and about
45% less than burning coal. Combined cycle power generation using natural gas is thus
the cleanest source of power available using hydrocarbon fuels and this technology is
widely used wherever gas can be obtained at a reasonable cost.
The PTT GHG Tool allows the input of fuel data in terms of mass or volume only,
therefore volume of gasoline and mass of lignite were converted from the energy value
of the natural gas sold in 2016 using NCV values. The volume of gasoline and mass of
lignite values were input into the tool as well as the volume of total natural gas sales.
Avoided emissions were simply calculated by subtracting the high value of emissions
with the emissions for natural gas combustion.
Emission factors:
1.Emissions include carbon dioxide (CO2), methane (CH4) and nitrous oxide
2.Fuel volume/mass was converted in the PTT GHG Tool in energy values using NCV
values from “Electric Power In Thailand, Department of Alternative Energy Development
and Efficiency, Ministry of Energy, DEDE (2010).”
3.Emission factors for stationary combustion lignite came from “2006 IPCC Guidelines
for National Greenhouse Gas Inventories” developed by the Intergovernmental Panel on
Climate Change (IPCC) Vol.2 Ch.2 Table 2.2
4.Emission factors for mobile combustion of gasoline came from “2006 IPCC Guidelines
for National Greenhouse Gas Inventories” developed by the Intergovernmental Panel on
Climate Change (IPCC) Vol. 2 Ch. 1 table 1.4
5.GWP from IPCC AR4 (100 years)
http://www.ipcc.ch/publications_and_data/ar4/wg1/en/ch2s2-10-2.html
Are these low-carbon product(s) or do they enable avoided emissions?
Low-carbon product and avoided emissions
Taxonomy, project or methodology used to classify product(s) as low-carbon
or to calculate avoided emissions
Other, please specify
Subtract with avoided emission
% revenue from low carbon product(s) in the reporting year
59
Comment
In addition to natural gas as low carbon product, PTTEP has also planned to invest in
Climate Related RD&T amount of at least 3% of annual net profit.
Climate Related RD&T, including new technologies and capability of the Company’s
research and development program, is developed to be in line with the Company’s
growth strategy. The Capability and Technology Development Roadmap was created as
well as research on technology to support business growth in 3 areas which are focused
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to increase exploration success, enhance more production, and develop green practice.
C-OG4.6
(C-OG4.6) Describe your organization’s efforts to reduce methane emissions from
your activities.
Since 2013 until present, PTTEP has developed and continued our own methane leak
detection and repairing program for both onshore and offshore operating assets in Thailand,
Myanmar and Australia. The methane leak mitigation and action plan is developed for each
assets to reduce methane emission.
In 2015, PTTEP, through our parent company PTT Group, participates in the CCAC Oil & Gas
Methane Partnership. The CCAC Oil & Gas Methane Partnership is designed to help
participating oil & gas companies better understand and systematically manage their methane
emissions – and to help them demonstrate their systematic management to stakeholders. It is
the result of an extensive consultation with oil and gas companies and industry groups,
institutional investors and NGOs. The aim was to create a mechanism robust enough to meet
the needs of stakeholders and implementable by companies. PTTEP has participated in a task
force to develop and review the Technical Guidance Document on methane emissions
reduction.
In 2017, PTTEP developed the methane survey guideline to support the operations on methane
self-monitoring and emission reduction.
COG4.7
(C-OG4.7) Does your organization conduct leak detection and repair (LDAR) or use
other methods to find and fix fugitive methane emissions from oil and gas production
activities?
Yes
C-OG4.7a
(C-OG4.7a) Describe the protocol through which methane leak detection and repair or
other leak detection methods, are conducted for oil and gas production activities,
including predominant frequency of inspections, estimates of assets covered, and
methodologies employed.
Since 2013, PTTEP has developed and continued our own methane leak detection and
repairing program for both onshore and offshore operating assets in Thailand, Myanmar and
Australia. The methane leak mitigation and action plan is developed for each assets to reduce
methane emission. In 2017, PTTEP developed the methane survey guideline to support the
operations on methane self-monitoring and emission reduction. The methane survey approach
is under the Loss of Primary Containment (LOPC) Reporting and Reduction which is an integral
part of PTTEP SSHE and Process Safety management system. It has been developed based
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on the United States Environmental Protection Agency (US EPA) Method 21 and US EPA Leak
Detection and Repair (LDAR) program (EPA-305-D-07-001, Leak Detection and Repair – A
Best Practices Guide, United States Environmental Protection Agency (US EPA), October
2007).
For example, in 2018 we apply this guideline at our Great Bongkot North and Zawtika
production operations where we had surveyed approximately 16 wellhead platforms, 6
processing platforms and 2 block valve stations with 126 points of fugitive leak detected. This
survey will results in leak reduction of approximately 1,550 tonneCO2e/yr after leak fixed.
These surveys were internally conducted by our PTTEP staff. These measures aim to help us
record our fugitive methane emission with more accuracy and reduce the methane emissions
from fugitive.
Outcomes from the survey shall allow the unintentional leaks to be detected and fixed, which
subsequently enhances process safety, increases productions from the recovered gases, and
ultimately enables to evaluate the current status of PTTEP GHG emissions and comes up with
any means of mitigation accordingly. This approach applies to all projects under PTTEP
operational control. To ensure that the emission reduction performance is maintained, it is
suggested that the leak survey should be conducted regularly. The more frequent the survey
conducted, the better the reduction performance is ensured. Normally, the survey frequency
should be conducted at least, but not limited to, as follows: For routine maintenance by assets:
• After there is any significant change made to the equipment/component
• After major/minor shutdown or maintenance activities
• As per site’s requirement or maintenance programs
For re-monitoring the GHG reduction:
• At the interval of three years for each location
• If the survey for routine maintenance and for re-monitoring the GHG reduction performance
are scheduled for the same period, the survey can be combined together to avoid
overconsuming both manpower and resources.
C-OG4.8
(C-OG4.8) If flaring is relevant to your oil and gas production activities, describe your
organization’s efforts to reduce flaring, including any flaring reduction targets.
PTTEP GHG medium term target was set 25% emission intensity reduction by 2030 from 2012
base year covering all operating assets under PTTEP operational control. GHG emission
performance included in the target covers all sources of GHG emission, i.e. flaring, fuel
combustion, and fugitives and process vents. GHG reduction initiatives has been voluntarily
developed and implemented for achieving the target as planned.
As flare is a major contribution on PTTEP scope 1+2 GHG emission (approximately 55%), the
GHG reduction projects are also focus on flaring reduction as follows:
• Flash Gas Recovery Unit at Greater Bongkot South: The project was implemented since
2013. In 2018, PTTEP was able to recover flash gas from condensate production in Greater
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Bongkot South accounting for 1,346 MMSCF per year which is equivalent to a flare reduction of
approximately 141,283 tCO2e per year
• Flare gas utilisation at Sirikit Oil Field: The project was implemented since 2013.The excess
gas from the petroleum production process was utilized by selling to UAC Global Public Co.,
Ltd. for electricity production. In 2018, flare reduction can be reduced approximately 44,291
tCO2e per year
• Trunk flow line from remote station of Sirikit Oil Field: Trunk flow line project aims to reduce
flaring at remote station of Sirikit Oil field by transporting excess gas through pipelines to be
consolidated and reused at the main production facilities. The project started to operate in the
4th quarter of 2016. In 2018, estimated flare reduction was of 25,497 tCO2e per year.
• LP Flare Recovery at Sirikit Oil Field: The low pressure excess gas from the petroleum
production process was recovered by gas ejector to return gas which otherwise be flared at low
pressure flare to production process. The project started to operate in the 3rd quarter of 2018.
In 2018, estimated flare reduction was of 1,149 tCO2e per year.
C5. Emissions methodology
C5.1
(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).
Scope 1
Base year start
January 1, 2012
Base year end
December 31, 2012
Base year emissions (metric tons CO2e)
5,037,155
Comment
The base year emissions was recalculated to cover all operating assets in Thailand,
Myanmar and Australia which covered by the GHG intensity reduction target at least
25% in 2030 relatively to 2012 base year.
Scope 2 (location-based)
Base year start
January 1, 2012
Base year end
December 31, 2012
Base year emissions (metric tons CO2e)
3,919
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Comment
The base year emissions was recalculated to cover all operating assets in Thailand,
Myanmar and Australia which covered by the GHG intensity reduction target at least
25% in 2030 relatively to 2012 base year.
Scope 2 (market-based)
Base year start
Base year end
Base year emissions (metric tons CO2e)
Comment
C5.2
(C5.2) Select the name of the standard, protocol, or methodology you have used to
collect activity data and calculate Scope 1 and Scope 2 emissions.
American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the
Oil and Natural Gas Industry, 2009
IPCC Guidelines for National Greenhouse Gas Inventories, 2006
IPIECA’s Petroleum Industry Guidelines for reporting GHG emissions, 2nd edition, 2011
ISO 14064-1
C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
4,136,247
Start date
January 1, 2018
End date
December 31, 2018
Comment
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C6.2
(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure
Scope 2, market-based
We have no operations where we are able to access electricity supplier emission factors
or residual emissions factors and are unable to report a Scope 2, market-based figure
Comment
C6.3
(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
5,617
Start date
January 1, 2018
End date
December 31, 2018
Comment
C6.4
(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,
etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting
boundary which are not included in your disclosure?
No
C6.5
(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining
any exclusions.
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Purchased goods and services
Evaluation status
Relevant, calculated
Metric tonnes CO2e
2.77
Emissions calculation methodology
The calculation is made from:
Approx. 2.77 tCO2e using accounting of the goods and services provided during the
event, including emission from cooking, electricity consumption, transportation of
equipment and attendees, accommodation, distribution materials and waste from
PTTEP Transformation event which was a carbon neutral event.
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
100
Explanation
Capital goods
Evaluation status
Relevant, not yet calculated
Explanation
Emission information for capital goods such as machinery and equipment are not yet
available.
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated
Metric tonnes CO2e
357
Emissions calculation methodology
Latest data for electric power transmission and distribution losses was 6% for Thailand
and 5% for Australia in the year 2014. Data is from
https://data.worldbank.org/indicator/eg.elc.loss.zs. Emissions from scope 2 were 5,406
tCO2e for Thailand and 229 tCO2e for Australia, total emissions before transmission
and distribution loss would have been 5,751 tCO2e for Thailand and 241 tCO2e for
Australia.
6% of 5751tCO2e is 345 tCO2e and 5% of 241 tCO2e is 12 tCO2e, then totally = 357
tCO2e for transmission and distribution loss.
PTT Exploration & Production Public Company Limited CDP Climate Change Questionnaire 2019 Monday, August 5, 2019
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Percentage of emissions calculated using data obtained from suppliers or
value chain partners
100
Explanation
Upstream transportation and distribution
Evaluation status
Not relevant, explanation provided
Explanation
Majority transportation and distribution e.g. transportation of rigs and machinery are
already considered including in scope 1 since their operational control is under PTTEP.
Waste generated in operations
Evaluation status
Relevant, calculated
Metric tonnes CO2e
49,904
Emissions calculation methodology
PTTEP’s industrial waste is mainly disposed in two ways: incineration (which is
alternatively burning in cement kiln) and landfill. By using emission factor for industrial
waste for these two disposal methods, we arrived at an estimate of the Scope 3
emissions from waste generation.
The GHG emission factor from incineration = 1.0 tonneCO2 output/tonne waste
(referred: Good Practice Guidance and Uncertainty Management in National
Greenhouse Gas Inventories, IPCC)
The GHG emission factor from landfill = 0.8 tonneCO2 output/tonne waste (referred:
https://www.anamai.moph.go.th)
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
100
Explanation
Business travel
Evaluation status
Relevant, calculated
Metric tonnes CO2e
14,772.3
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Emissions calculation methodology
1. Activity data: Distance travelled by employees segregated by cabin class and flight
classification by short haul or long haul.
2. Emission factors: In the PTT Group standard 3. GWP values: The GWP values from
IPCC AR4 were used.
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
100
Explanation
1. Activity data: Distance travelled by employees segregated by cabin class and flight
classification by short haul or long haul.
2. Emission factors: In the PTT Group standard
3. GWP values: The GWP values from IPCC AR4 were used
Employee commuting
Evaluation status
Not relevant, explanation provided
Explanation
Referring "Overview of methodologies: Estimating petroleum industry value chain
(Scope 3) greenhouse gas emissions" of IPIECA and API, the category emissions
comparison also requires considering volume, for example if the amount of fuel used in
a category is smaller than the amount of that fuel sold by the company included in
Category 11 (Use of sold products), the company may assume that accounting for fuel
emissions in both Category 11 and the other category may be double counting.
Categories for which it may be straightforward to avoid the double counting of Category
11 (Use of sold products) emissions include Category 4 (upstream transport and
distribution), Category 6 (business travel) and Category 7 (employee commuting).
Accordingly, PTTEP considered that the emissions from fuel that company sell are more
than the fuel emissions from the fuel used in Category 4 (upstream transport and
distribution) inventory, and we choose to exclude fuel emissions from Category 7 and
disclose under Category 11 (Use of sold products) emissions.
Upstream leased assets
Evaluation status
Not relevant, explanation provided
Explanation
PTTEP leases upstream assets, i.e. helicopter, heavy truck, marine vessel already
included in scope 1 since their activities are under PTTEP operational control.
Downstream transportation and distribution
Evaluation status
Relevant, calculated
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Metric tonnes CO2e
4,650
Emissions calculation methodology
1. Activity data: vehicle mileage (segregated by vehicle type and fuel type) and fuel use
data separated by fuel type,
2. Emissions factors: The emission factors in the PTT Group standard & API
Compendium 2009 are used,
3. GWP values: The GWP values from IPCC AR4 were used.
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
100
Explanation
Processing of sold products
Evaluation status
Relevant, calculated
Metric tonnes CO2e
3,732,934
Emissions calculation methodology
Natural gas is major PTTEP’s product (More than 70% by volume) and was sold directly
to PTT Gas Separation Plant (GSP) which is our sole customer. Therefore, GHG
emissions from processing of PTTEP’s natural gas sold is equal to scope 1 GHG
emissions of PTT GSP. However, natural gas from PTTEP is approx. 36% of total PTT
GSP feedstock.
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
100
Explanation
The natural gas we produced are sold directly to PTT as feedstock .
Use of sold products
Evaluation status
Relevant, calculated
Metric tonnes CO2e
24,826,626
Emissions calculation methodology
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1. Activity data: volume of gas sold, which is assumed to be combusted within 2018
2. Emission factors: in the PTT Group Standard (Annex A)
3. GWP Values from IPCC AR4 were used (IPCC 2006, vol.2, ch.1, p.1.18)
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
100
Explanation
Emissions from natural gas combustion by the end user were calculated. It was
assumed that all natural gas sold in 2018 was combusted. The volume of natural gas
sold was 497,477mmscf. This data was not previously calculated in PTTEP’s
Sustainability Report for 2018. Emissions from crude oil are not relevant because it is
not combusted directly and must be processed into other products before being used.
End of life treatment of sold products
Evaluation status
Not relevant, explanation provided
Explanation
PTTEP’s products are crude oil, natural gas and condensate as business to business
nature. We do not sell our product to the mass consumers. These products generally do
not end up as waste since they are fuels or are used to produce fuels, therefore there is
no end of life treatment for our products
Downstream leased assets
Evaluation status
Not relevant, explanation provided
Explanation
PTTEP does not have any downstream leased assets.
Franchises
Evaluation status
Not relevant, explanation provided
Explanation
PTTEP engages in only exploration and production without downstream business.
PTTEP therefore does not have any franchises as defined in the GHG Scope 3
Accounting and Reporting Standard.
Investments
Evaluation status
Not relevant, explanation provided
Explanation
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PTTEP engages in only exploration and production (upstream) without midstream and
downstream business and does not provide any financial services. Therefore, this issue
is not applicable to our current business model.
Other (upstream)
Evaluation status
Not relevant, explanation provided
Explanation
All relevant had been identified in each category above.
Other (downstream)
Evaluation status
Not relevant, explanation provided
Explanation
All relevant had been identified in each category above.
C6.7
(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to
your organization?
Yes
C6.7a
(C6.7a) Provide the emissions from biologically sequestered carbon relevant to your
organization in metric tons CO2.
Row 1
Emissions from biologically sequestered carbon (metric tons CO2)
5,536
Comment
Biogenic carbon dioxide emissions is from the combustion or decomposition of
biologically-based materials other than fossil fuels e.g , bio diesel (B5) used in Thailand
contain 5% of biofuel.
C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the
reporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.
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Intensity figure
0.000023436
Metric numerator (Gross global combined Scope 1 and 2 emissions)
4,133,252
Metric denominator
unit total revenue
Metric denominator: Unit total
176,363,391,870
Scope 2 figure used
Location-based
% change from previous year
23
Direction of change
Decreased
Reason for change
The reasons for change are from:
1. The increase in the total revenue due to the increase of average selling product price
in 2018.
2. The decrease in the total GHG emission as a result of unplanned shutdown of the
Bongkot South (GBS) asset which has high GHG emission intensity in Q4 and GHG
emission reduction initiatives detailed in C4.3b. such as the flash gas recovery, flare gas
utilization, trunk flow line and the marine transportation projects .
Note: the consolidated revenue is used as the denominator for the calculations.
C-OG6.12
(C-OG6.12) Provide the intensity figures for Scope 1 emissions (metric tons CO2e) per
unit of hydrocarbon category.
Unit of hydrocarbon category (denominator)
Other, please specify
Thousand tonnes of production
Metric tons CO2e from hydrocarbon category per unit specified
249
% change from previous year
7
Direction of change
Decreased
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Reason for change
The reasons for change is from the decrease in the total GHG emission as a result of
GHG emission reduction initiatives detailed in C4.3b and unplanned shutdown of the
Bongkot South (GBS) asset which has high GHG emission intensity in Q4.
Comment
C-OG6.13
(C-OG6.13) Report your methane emissions as percentages of natural gas and
hydrocarbon production or throughput.
Oil and gas business division
Upstream
Estimated total methane emitted expressed as % of natural gas production or
throughput at given division
0.44
Estimated total methane emitted expressed as % of total hydrocarbon
production or throughput at given division
0.35
Comment
As an upstream oil and gas business, our methane emission is mainly from flaring and
fuel combustion while total production ratio of natural gas to total hydrocarbon was 79%
by weight
C7. Emissions breakdowns
C7.1
(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
Yes
C7.1a
(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas
type and provide the source of each used greenhouse warming potential (GWP).
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Greenhouse gas Scope 1 emissions (metric tons of
CO2e)
GWP Reference
CO2 3,809,364 IPCC Fourth Assessment Report (AR4 -
100 year)
CH4 324,525 IPCC Fourth Assessment Report (AR4 -
100 year)
N2O 1,807 IPCC Fourth Assessment Report (AR4 -
100 year)
SF6 2 IPCC Fourth Assessment Report (AR4 -
100 year)
Other, please
specify
HFC, CFC, HCFC
549 IPCC Fourth Assessment Report (AR4 -
100 year)
C-OG7.1b
(C-OG7.1b) Break down your total gross global Scope 1 emissions from oil and gas
value chain production activities by greenhouse gas type.
Emissions category
Combustion (excluding flaring)
Value chain
Upstream
Product
Unable to disaggregate
Gross Scope 1 CO2 emissions (metric tons CO2)
1,596,838
Gross Scope 1 methane emissions (metric tons CH4)
8
Total gross Scope 1 emissions (metric tons CO2e)
1,598,836
Comment
Total gross Scope 1 included the emissions of CO2, CH4 and N2O
Emissions category
Flaring
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Value chain
Upstream
Product
Unable to disaggregate
Gross Scope 1 CO2 emissions (metric tons CO2)
2,203,313
Gross Scope 1 methane emissions (metric tons CH4)
37,187
Total gross Scope 1 emissions (metric tons CO2e)
2,296,268
Comment
Total gross Scope 1 included the emissions of CO2, CH4 and N2O.
Emissions category
Venting
Value chain
Upstream
Product
Unable to disaggregate
Gross Scope 1 CO2 emissions (metric tons CO2)
0.02
Gross Scope 1 methane emissions (metric tons CH4)
0
Total gross Scope 1 emissions (metric tons CO2e)
0.02
Comment
Total gross Scope 1 included the emissions of CO2, and CH4. This is included the
process (feedstock) emissions.
Emissions category
Fugitives
Value chain
Upstream
Product
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Unable to disaggregate
Gross Scope 1 CO2 emissions (metric tons CO2)
3,597
Gross Scope 1 methane emissions (metric tons CH4)
9,255
Total gross Scope 1 emissions (metric tons CO2e)
241,143
Comment
Total gross Scope 1 included the emissions of CO2, CH4, N2O, HFC, PFC, Mixture and
SF6.
C7.2
(C7.2) Break down your total gross global Scope 1 emissions by country/region.
Country/Region Scope 1 emissions (metric tons CO2e)
Thailand 3,668,964
Myanmar 250,933
Australia 216,350
C7.3
(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to
provide.
By facility
By activity
C7.3b
(C7.3b) Break down your total gross global Scope 1 emissions by business facility.
Facility Scope 1 emissions (metric tons CO2e) Latitude Longitude
GBN 633,503 7.89501 102.4656
GBS 1,777,903 7.65743 102.680852
ART 774,022 8.24169 102.47739
S1 & L22/43 435,926 16.80199 99.95117
Suphanburi 2,876 14.33893 99.97073
SPH 44,597 16.677019 102.771435
PSB 110 7.23497 100.56158
RSB 27 10.030612 98.633312
PTTEP AA 216,350 -13.57462 123.29637
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Zawitka 250,933 14.190867 96.045583
C7.3c
(C7.3c) Break down your total gross global Scope 1 emissions by business activity.
Activity Scope 1 emissions (metric tons CO2e)
Flare 2,296,268
Stationary Combustion 1,488,280
Mobile Combustion 110,556
Vent Emission 0.02
Fugitive Emission 240,459
Fugitive of Fluorinated Gas 684
C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-
ST7.4/C-TO7.4/C-TS7.4
(C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4) Break
down your organization’s total gross global Scope 1 emissions by sector production
activity in metric tons CO2e.
Gross Scope 1
emissions, metric
tons CO2e
Comment
Oil and gas
production activities
(upstream)
4,136,247 The Gross Scope 1 emission presented is excluded
the GHG emission from transportation of personnel
and transportation of materials from supplier to
industrial sector boundary
Oil and gas
production activities
(downstream)
0 PTTEP is categorized as upstream oil & gas company
and no activities related to downstream.
C7.5
(C7.5) Break down your total gross global Scope 2 emissions by country/region.
Country/Region Scope 2,
location-
based (metric
tons CO2e)
Scope 2,
market-
based
(metric tons
CO2e)
Purchased and
consumed
electricity, heat,
steam or cooling
(MWh)
Purchased and consumed
low-carbon electricity,
heat, steam or cooling
accounted in market-
based approach (MWh)
Thailand 5,406 15,562 0
Australia 210 1,019 0
Myanmar 1 4 0
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C7.6
(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to
provide.
By facility
By activity
C7.6b
(C7.6b) Break down your total gross global Scope 2 emissions by business facility.
Facility Scope 2 location-based emissions
(metric tons CO2e)
Scope 2, market-based emissions
(metric tons CO2e)
S1 & L
22/48
2,857
Suphanburi 1,314
SPH 681
PSB 460
RSB 94
PTTEP AA 210
Zawtika 1
C7.6c
(C7.6c) Break down your total gross global Scope 2 emissions by business activity.
Activity Scope 2, location-based emissions
(metric tons CO2e)
Scope 2, market-based emissions
(metric tons CO2e)
Electricity
Purchased
5,617
C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-
TO7.7/C-TS7.7
(C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7) Break down
your organization’s total gross global Scope 2 emissions by sector production
activity in metric tons CO2e.
Scope 2,
location-
based, metric
tons CO2e
Scope 2, market-
based (if
applicable), metric
tons CO2e
Comment
Oil and gas
production
5,617 The scope 2 GHG from our operation is
just from the purchased electricity for
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activities
(upstream)
onshore facilities and petroleum support
bases only. The offshore facilities used
their own-generated electricity that
supplied by fuel gas.
Oil and gas
production
activities
(downstream)
0
C7.9
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the
reporting year compare to those of the previous reporting year?
Decreased
C7.9a
(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined) and for each of them specify how your emissions compare to the
previous year.
Change in
emissions
(metric tons
CO2e)
Direction
of change
Emissions
value
(percentage)
Please explain calculation
Change in
renewable
energy
consumption
0 No change 0 Renewable energy source, e.g. solar
power, etc. is non material source of
energy used by PTTEP. Therefore, no
change in emission as well as
percentage of emission value were
identified.
Other
emissions
reduction
activities
178,100 Decreased 4.3 In 2018, our reduction in GHG emission
is a result of a combination of a
shutdown in operating asset with high
GHG emission intensity and
implementation of emissions reduction
activities included the flash gas recovery
project at Greater Bongkot South, Sao-
Thien A oil field flare gas recovery and
utilization, heat recovery steam
generator at Sirikit oil field, seawater
pump optimization, marine vessel
project, reduction of methane fugitive
emissions, and trunk flow line at Sirikit
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oilfield. More details of these projects
can be found in C4.3b.
Divestment 0 No change 0
Acquisitions 0 No change 0
Mergers 0 No change 0
Change in
output
307,792 Decreased 6.6 Decreasing in 2018 production rate can
lead to 6.6 % decrease in emissions.
Change in
methodology
0 No change 0
Change in
boundary
0 No change 0
Change in
physical
operating
conditions
0 No change 0
Unidentified 0 0
Other 0 No change 0
C7.9b
(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a
location-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?
Location-based
C8. Energy
C8.1
(C8.1) What percentage of your total operational spend in the reporting year was on
energy?
More than 5% but less than or equal to 10%
C8.2
(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertakes this
energy-related activity
Consumption of fuel (excluding
feedstocks)
Yes
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Consumption of purchased or
acquired electricity
Yes
Consumption of purchased or
acquired heat
No
Consumption of purchased or
acquired steam
No
Consumption of purchased or
acquired cooling
No
Generation of electricity, heat, steam,
or cooling
Yes
C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.
Heating value MWh from
renewable
sources
MWh from non-
renewable sources
Total
MWh
Consumption of fuel
(excluding feedstock)
HHV (higher
heating value)
14,946 6,747,139 6,762,085
Consumption of purchased or
acquired electricity
2,279 13,826 16,105
Consumption of self-
generated non-fuel renewable
energy
390 390
Total energy consumption 17,615 6,760,965 6,778,580
C8.2b
(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes this
fuel application
Consumption of fuel for the generation of
electricity
Yes
Consumption of fuel for the generation of
heat
No
Consumption of fuel for the generation of
steam
No
Consumption of fuel for the generation of
cooling
No
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Consumption of fuel for co-generation or
tri-generation
No
C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.
Fuels (excluding feedstocks)
Motor Gasoline
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
88
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
0
Comment
Fuels (excluding feedstocks)
Diesel
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
440,512
MWh fuel consumed for self-generation of electricity
1.44
MWh fuel consumed for self-generation of heat
0
Comment
Fuels (excluding feedstocks)
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Jet Kerosene
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
18,167
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
0
Comment
Fuels (excluding feedstocks)
Natural Gas
Heating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
6,193,011
MWh fuel consumed for self-generation of electricity
306,333
MWh fuel consumed for self-generation of heat
0
Comment
Fuels (excluding feedstocks)
Biodiesel
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
14,040
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
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0
Comment
Fuels (excluding feedstocks)
Liquefied Petroleum Gas (LPG)
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
16,246
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
0
Comment
Fuels (excluding feedstocks)
Marine Fuel Oil
Heating value
LHV (lower heating value)
Total fuel MWh consumed by the organization
89,751
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
0
Comment
Fuels (excluding feedstocks)
Lignite Coal
Heating value
LHV (lower heating value)
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Total fuel MWh consumed by the organization
3,847
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
0
Comment
C8.2d
(C8.2d) List the average emission factors of the fuels reported in C8.2c.
Biodiesel
Emission factor
0.00608
Unit
metric tons CO2e per m3
Emission factor source
IPCC 2006 Vol 2 Ch 3 table 3.2.2 for Emission Factor and Biodiesels (EtOH theoretical
number) IPCC (2006) Vol. 2 Ch. 1 table 1.2 and GREET1_2011 Biodiesel density , ‘Fuel
specs’ sheet, cell E30.
Comment
Diesel
Emission factor
2.7446
Unit
metric tons CO2e per m3
Emission factor source
IPCC 2006 Vol 2 Ch 1 table 1.4 for Emission Factor and DEDE 2010 p.41 for
Conversion Factor
Comment
Jet Kerosene
Emission factor
2.4899
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Unit
metric tons CO2e per m3
Emission factor source
IPCC 2006 Vol 2 Ch 1 table 1.4 for Emission Factor and DEDE 2010 p.41 for
Conversion Factor
Comment
Lignite Coal
Emission factor
Unit
Emission factor source
Comment
Liquefied Petroleum Gas (LPG)
Emission factor
3.06076
Unit
metric tons CO2 per metric ton
Emission factor source
IPCC 2006 Vol 2 Ch 1 table 1.4 for Emission Factor and DEDE 2010 p.41 for
Conversion Factor.
Comment
Marine Fuel Oil
Emission factor
3.10886
Unit
metric tons CO2e per m3
Emission factor source
IPCC 2006 Vol 2 Ch 1 table 1.4 for Emission Factor and DEDE 2010 p.41 for
Conversion Factor.
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Comment
Motor Gasoline
Emission factor
2.27628
Unit
metric tons CO2e per m3
Emission factor source
IPCC 2006 Vol 2 Ch 1 table 1.4 for Emission Factor and and DEDE 2010 p.41 for
Conversion Factor.
Comment
Natural Gas
Emission factor
2.69263
Unit
metric tons CO2e per metric ton
Emission factor source
API 2009
Comment
C8.2e
(C8.2e) Provide details on the electricity, heat, steam, and cooling your organization
has generated and consumed in the reporting year.
Total Gross
generation
(MWh)
Generation that is
consumed by the
organization (MWh)
Gross generation
from renewable
sources (MWh)
Generation from
renewable sources that is
consumed by the
organization (MWh)
Electricity 306,333 306,333 390 390
Heat 0 0 0 0
Steam 0 0 0 0
Cooling 0 0 0 0
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C8.2f
(C8.2f) Provide details on the electricity, heat, steam and/or cooling amounts that
were accounted for at a low-carbon emission factor in the market-based Scope 2
figure reported in C6.3.
Basis for applying a low-carbon emission factor
No purchases or generation of low-carbon electricity, heat, steam or cooling accounted
with a low-carbon emission factor
Low-carbon technology type
Region of consumption of low-carbon electricity, heat, steam or cooling
MWh consumed associated with low-carbon electricity, heat, steam or cooling
Emission factor (in units of metric tons CO2e per MWh)
Comment
C9. Additional metrics
C9.1
(C9.1) Provide any additional climate-related metrics relevant to your business.
C-OG9.2a
(C-OG9.2a) Disclose your net liquid and gas hydrocarbon production (total of
subsidiaries and equity-accounted entities).
In-year net
production
Comment
Crude oil and condensate, million
barrels
30.75 The hydrocarbon productions are from
17.52MBBL of crude oil and 13.23 MBBL of
Condensate
Natural gas liquids, million barrels 0 No production from natural gas liquids
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Oil sands, million barrels
(includes bitumen and synthetic
crude)
0 No production from oil sands
Natural gas, billion cubic feet 497.5 NA
C-OG9.2b
(C-OG9.2b) Explain which listing requirements or other methodologies you use to
report reserves data. If your organization cannot provide data due to legal restrictions
on reporting reserves figures in certain countries, please explain this.
PTTEP defines Proved Reserves are those quantities of petroleum which, by analysis of
geological and engineering data, can be estimated with reasonable certainty to be
commercially recoverable, from a given date forward, from known reservoirs and under current
economic conditions, operating methods, and government regulations. Practically, Proved
Reserves mean the petroleum in reservoirs which can be commercially produced based on
supporting data gathered during the well testing process. The Company’s Proved Reserves are
reviewed annually by our earth scientists and reservoir engineers to ensure the industry’s
rigorous professional standards.
Moreover, PTTEP defines Probable Reserves are those additional quantities of petroleum
obtained from an analysis of geoscience and/or engineering data similar to that used in the
estimation of Proved Reserved but with less production possibility.
Due to the company policy, PTTEP publicly reports only Proved and Probable reserves.
C-OG9.2c
(C-OG9.2c) Disclose your estimated total net reserves and resource base (million
boe), including the total associated with subsidiaries and equity-accounted entities.
Estimated total net
proved + probable
reserves (2P)
(million BOE)
Estimated total net
proved + probable +
possible reserves (3P)
(million BOE)
Estimated net
total resource
base (million
BOE)
Comment
Row
1
1,028 Due to the company
policy, PTTEP publicly
reports only Proved and
Probable reserves
C-OG9.2d
(C-OG9.2d) Provide an indicative percentage split for 2P, 3P reserves, and total
resource base by hydrocarbon categories.
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Net proved +
probable
reserves (2P)
(%)
Net proved +
probable +
possible reserves
(3P) (%)
Net total
resource
base (%)
Comment
Crude oil /
condensate /
Natural gas liquids
25 Due to the company
policy, PTTEP publicly
reports only Proved and
Probable reserves
Natural gas 75 Due to the company
policy, PTTEP publicly
reports only Proved and
Probable reserves
Oil sands (includes
bitumen and
synthetic crude)
0 PTTEP had no reserve
from oil sands
C-OG9.2e
(C-OG9.2e) Provide an indicative percentage split for production, 1P, 2P, 3P reserves,
and total resource base by development types.
Development type
Onshore
In-year net production (%)
14
Net proved reserves (1P) (%)
15
Net proved + probable reserves (2P) (%)
14
Net proved + probable + possible reserves (3P) (%)
Net total resource base (%)
Comment
Due to the company policy, PTTEP publicly reports only Proved and Probable reserves.
Development type
Shallow-water
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In-year net production (%)
86
Net proved reserves (1P) (%)
85
Net proved + probable reserves (2P) (%)
86
Net proved + probable + possible reserves (3P) (%)
Net total resource base (%)
Comment
Due to the company policy, PTTEP publicly reports only Proved and Probable reserves.
C-CO9.6/C-EU9.6/C-OG9.6
(C-CO9.6/C-EU9.6/C-OG9.6) Disclose your investments in low-carbon research and
development (R&D), equipment, products, and services.
Investment start date
October 1, 2017
Investment end date
December 31, 2020
Investment area
R&D
Technology area
Carbon capture and storage/utilisation
Investment maturity
Small scale commercial deployment
Investment figure
19,000,000
Low-carbon investment percentage
0-20%
Please explain
PTTEP has planned to invest in Climate related RD&T amount of at least 3% of annual
net profit.
Climate related RD&T, including new technologies and capability of the Company’s
research and development program, is developed to be in line with the Company’s
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growth strategy. The Capability and Technology Development. Roadmap was created
as well as research on technology to support business growth in 3 areas which are
focused to increase exploration success, enhance more production, and develop green
practice. For this project, PTTEP is developing high value products from Flare or
Associated Gas.
Investment start date
July 1, 2017
Investment end date
December 31, 2025
Investment area
R&D
Technology area
Carbon capture and storage/utilisation
Investment maturity
Pilot demonstration
Investment figure
456,000,000
Low-carbon investment percentage
0-20%
Please explain
PTTEP has planned to invest in Climate related RD&T amount of at least 3% of annual
net profit. Climate related RD&T, including new technologies and capability of the
Company’s research and development program, is developed to be in line with the
Company’s growth strategy. The Capability and Technology Development Roadmap
was created as well as researchs on technology to support business growth in 3 areas
which are focused to increase exploration success, enhance more production, and
develop green practice. For this project, PTTEP is studying to develop process of CO2
Conversion to Carbonate-base product.
C-OG9.7
(C-OG9.7) Disclose the breakeven price (US$/BOE) required for cash neutrality during
the reporting year, i.e. where cash flow from operations covers CAPEX and dividends
paid/ share buybacks.
31.7
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C10. Verification
C10.1
(C10.1) Indicate the verification/assurance status that applies to your reported
emissions.
Verification/assurance status
Scope 1 Third-party verification or assurance process in place
Scope 2 (location-based or market-based) Third-party verification or assurance process in place
Scope 3 Third-party verification or assurance process in place
C10.1a
(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 and/or Scope 2 emissions and attach the relevant statements.
Scope
Scope 1
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
1
2018SDReportEN.pdf
Page/ section reference
Page 94-95
Relevant standard
ISAE 3410
Proportion of reported emissions verified (%)
100
Scope
Scope 2 location-based
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Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
1
2018SDReportEN.pdf
Page/ section reference
Page 94-95
Relevant standard
ISAE 3410
Proportion of reported emissions verified (%)
100
C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.
Scope
Scope 3- at least one applicable category
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Attach the statement
1
2018SDReportEN.pdf
Page/section reference
Page 94-95
Relevant standard
ISAE 3410
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C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
No, but we are actively considering verifying within the next two years
C11. Carbon pricing
C11.1
(C11.1) Are any of your operations or activities regulated by a carbon pricing system
(i.e. ETS, Cap & Trade or Carbon Tax)?
Yes
C11.1a
(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
Australia ERF Safeguard Mechanism
Other ETS, please specify
Voluntary CDM
C11.1b
(C11.1b) Complete the following table for each of the emissions trading systems in
which you participate.
Australia ERF Safeguard Mechanism
% of Scope 1 emissions covered by the ETS
0
Period start date
January 1, 2013
Period end date
December 31, 2018
Allowances allocated
0
Allowances purchased
0
Verified emissions in metric tons CO2e
0
Details of ownership
Facilities we own and operate
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Comment
Period end date is based on end of asset sold. Since starting the operations, tax have
never been paid as PTTEP emission is within the emission limits by the regulation.
Other ETS, please specify
% of Scope 1 emissions covered by the ETS
0.26
Period start date
January 17, 2013
Period end date
January 16, 2019
Allowances allocated
0
Allowances purchased
0
Verified emissions in metric tons CO2e
10,581
Details of ownership
Facilities we own and operate
Comment
PTTEP has been certified in 2015 by the United Nations Framework convention on
Climate Change (UNFCCC) for its CDM project, Sao-Thien A Oil Field Flare Gas
Recovery and Utilization Project in Sukhothai, Thailand. Effective on 17th January 2013
the CDM project has been successfully registered as a CDM project. As of the end of
2013, the project has resulted in emission reductions equivalent to 10,581 tCO2e and
been issued of 10,581 tCO2 certified emission reduction (CER) (for 2013 emission
reductions) in 2015. The carbon credit is valid until January 2019. In 2014, PTTEP has
participated in T-VER pilot project in Reforestation and the carbon reduction from that
project was approved and certified by Thailand Greenhouse Gas Organization (TGO).
C11.1d
(C11.1d) What is your strategy for complying with the systems in which you
participate or anticipate participating?
PTTEP has been certified in 2015 by the United Nations Framework convention on Climate
Change (UNFCCC) for its CDM project, Sao-Thien A Oil Field Flare Gas Recovery and
Utilization Project in Sukhothai, Thailand. Effective on 17th January 2013 the CDM project has
been successfully registered as a CDM project. As of the end of 2013, the project has resulted
in emission reductions equivalent to 10,581 tCO2e and been issued of 10,581 tCO2 certified
emission reduction (CER) (for 2013 emission reductions) in 2015. The carbon credit is valid
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until January 2019. In addition, PTTEP also committed to operate under compliance with
regulatory requirement of any countries where we operate
C11.2
(C11.2) Has your organization originated or purchased any project-based carbon
credits within the reporting period?
Yes
C11.2a
(C11.2a) Provide details of the project-based carbon credits originated or purchased
by your organization in the reporting period.
Credit origination or credit purchase
Credit purchase
Project type
Solar
Project identification
Carbon Credit from Solar Cell Installation Project from the University of Phayao's
Campus Power Project for PTTEP Transformation Event in October 2018.
Verified to which standard
Verified to which standard
Other, please specify
T-VER project of Thailand Greenhouse Gas Management Organization (Public
Organization)
Number of credits (metric tonnes CO2e)
2.77
Number of credits (metric tonnes CO2e): Risk adjusted volume
2.77
Credits cancelled
No
Purpose, e.g. compliance
Voluntary Offsetting
C11.3
(C11.3) Does your organization use an internal price on carbon?
Yes
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C11.3a
(C11.3a) Provide details of how your organization uses an internal price on carbon.
Objective for implementing an internal carbon price
Stakeholder expectations
Change internal behavior
Drive low-carbon investment
Identify and seize low-carbon opportunities
GHG Scope
Scope 1
Application
Corporate structure that price is applied to increases the project economic viability for
some assets located in Thailand. In 2016, PTTEP began to include carbon pricing in
new project assessment related to flare gas recovery unit of a Thailand offshore asset
by using reference price from the Thailand Greenhouse Gas Management Organization
(TGO).
Actual price(s) used (Currency /metric ton)
200
Variance of price(s) used
a single price that is applied throughout the company independent of geography,
business unit, or type of decision
Type of internal carbon price
Shadow price
Impact & implication
PTTEP collaborated with companies within the PTT Group to develop our internal
carbon pricing scheme. This carbon price will be factored into investment decisions,
especially in projects with potential to generate a significant amount of GHG emission,
such as bidding for petroleum concessions and assessment of GHG emission reduction
projects. As a guideline, the company uses the price of 200 baht per tonne of CO2
equivalent, as recommended by the Thailand Greenhouse Gas Management
Organization (Public Organization), or a price in line with the relevant laws and
regulations of the country of operation.
C12. Engagement
C12.1
(C12.1) Do you engage with your value chain on climate-related issues?
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Yes, our suppliers
Yes, our customers
C12.1a
(C12.1a) Provide details of your climate-related supplier engagement strategy.
Type of engagement
Compliance & onboarding
Details of engagement
Included climate change in supplier selection / management mechanism
Climate change is integrated into supplier evaluation processes
Other, please specify
Green Procurement Criteria Manuals,
% of suppliers by number
9.4
% total procurement spend (direct and indirect)
3.64
% Scope 3 emissions as reported in C6.5
1
Rationale for the coverage of your engagement
Since 2017, PTTEP has developed and implemented the Green Procurement Criteria
Manual covered the goods and services that still not being included in Thai Green Label
Products list and PTTEP has significant proportion of spent on that goods or services. In
2018, PTTEP’s green procurement guideline is developed with the objective to
elaborate of roles and responsibilities as a responsible and prudent operator by
considering beyond private cost-benefit and approach to maximize net benefit of the
wider environment. This is to promote procurement of environmental friendly goods and
services, seek the opportunity to reduce environmental impact throughout their life cycle
by integrating environmental performance considerations in PTTEP’s procurement
process. This guideline focuses on how to integrate green criteria into procurement and
contract processes which can be applied to all related functions in corporate and
Thailand assets.
In 2018, over 9.4% of suppliers applied the manual and it could enhance more
consumption in green products or services supply.
Impact of engagement, including measures of success
PTTEP has set target 30% of office supplies to be green products and services by 2022.
Up to 2018, we achieved at 9.4%. of suppliers applied the manual since it was the
beginning of implementation phase for the manual. This target has been annually
monitored by responsible party and reported to relevant top management. In additional
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the achievement of the engagement measures in term of number of suppliers
implemented the manual and % of total procurement spend in green products/services.
Comment
C12.1b
(C12.1b) Give details of your climate-related engagement strategy with your
customers.
Type of engagement
Collaboration & innovation
Details of engagement
Other – please provide information in column 5
% of customers by number
100
% Scope 3 emissions as reported in C6.5
100
Please explain the rationale for selecting this group of customers and scope
of engagement
As natural gas is major PTTEP’s product (More than 70% by volume) and was sold
directly to PTT Gas Separation Plant (GSP) which is our sole customer, the processing
of our sold products by the GSP contributed as a significant GHG scope 3 emission.
The engagement with our sole customer is implemented via an establishment of the
Environmental taskforce in collaboration with customer to develop climate change
related policy & strategy.
Impact of engagement, including measures of success
With the systematic engagement i.e quarterly meeting, carbon pricing policy
development and as a result of the collaboration on policy and strategy, PTT Gas
Separation Plant (GSP) as a PTT subsidiary set the target on 5% GHG intensity
reduction. This target was quarterly monitored from the GHG emission performance
reported by PTT GSP. In 2018, PTT GSP already achieved at 13.3 % GHG intensity
reduction against 20% intensity reduction in 2030.
C12.3
(C12.3) Do you engage in activities that could either directly or indirectly influence
public policy on climate-related issues through any of the following?
Direct engagement with policy makers
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Other
C12.3a
(C12.3a) On what issues have you been engaging directly with policy makers?
Focus of
legislation
Corporate
position
Details of engagement Proposed legislative
solution
Cap and
trade
Support PTTEP has signed a memorandum of
understanding (MOU) with Thailand’s
Greenhouse Gas Organization (TGO) to be the
first of Thailand’s pilot project for the Thailand
Voluntary Emission Reduction Program (T-
VER), an initiative by TGO to develop a carbon
market in Thailand.
In 2016, PTTEP in collaboration with TGO
developed methods to reduce GHG for Methane
Leak Detection and Repairing in Petroleum
Processing and Distribution Systems. These
procedures are not only helpful to PTTEP but
can be used by other agencies.
The projects help to
promote a voluntary
carbon market in
Thailand for trading and
offsetting carbon.
Cap and
trade
Support In January, 2013, PTTEP’s Sao-Thien A’s flare
gas recovery and utilization project was
registered by UNFCCC’s CDM Executive Board
as a CDM project. We have been certified for
10,581 tCO2e of our carbon credits.
The project helps to
support the CDM
program and expands
the adoption of carbon
reduction projects in
Thailand
C12.3e
(C12.3e) Provide details of the other engagement activities that you undertake.
PTTEP in collaboration with government agencies, academies has implemented several
projects to promote our Corporate Social Responsibility which are directly or indirectly influence
public policy on climate-related issues. Examples of projects that have been launched;
1. PTTEP in combination with the Andaman Coastal Research Station for Development,
Faculty of Fisheries of Kasetsart University and Research and Development of Mangroves and
Coastal Forests (Ranong), and the Department of Marine and Coastal Resources, arranged the
3rd Conservation Youth Camp in December 2017, which took part in conservation activities that
at the Research and Development of Mangroves and Coastal Forests (Ranong), and Marine
Ecosystem Study. The PTTEP Conservation Youth Camp” was initiated in 2014, to give
secondary school students the chance to learn and realize the importance of natural resources
in their hometown, Ranong Province. The mangrove in Ranong Province is one of the most
plentiful mangroves in the Asia-Pacific region, and this area was announced as a Biosphere
Reserves under the UNESCO Man and the Biosphere (MAB) Programme in 1997.
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2. The Forest Volunteers for Environmental Protection training is a collaboration between
PTTEP and the Marine and Coastal Resources Administration Office 4 Surat Thani,
Department of Marine and Coastal Resources. The training is focused on creating awareness
and participation in the conservation of natural resources and the environment, sustainable use
of forest resources and also wildfire prevention for communities in the areas near the PTTEP
Reforestation project.
3. PTTEP is committed to reducing the environmental impacts through various projects e.g.
working with the Chaipattana Foundation, the Office of Royal Projects, the Department of
Forestry, Kasetsart University’s Faculty of Forestry and other related agencies, and launched
the “Forest Restoration for Eco-Learning at Sri Nakhon Khuean Khan Park Project” for eight
years (2013-2020). The improvement of the walking paths and nature signs took one year to
complete. But the ecological restoration of Bang Kachao forest is an ongoing mission that will
run until 2020. the Forest Reforestation for Eco-learning at Sri Nakhon Khuean Khan Park
Project (in line with HRH Princess Sirindhorn’s initivative, Bang Kachao) in Samut Prakan
Province. The project was initiated in 2013 to restore a 40-rai forest in botanical garden and to
renovate the park into an eco-learning site in the style of natural classroom. The site has
become a popular recreational ground, nicknamed “the Lung of Bangkok”. In 2018, PTTEP
continues to organize “Young Guide Course”, a training course for students in the area to build
up network and raise awareness of the value of “Bang Kachao, Forest in the City”. So far, 242
students have been trained under this program. This year 308,715 visitors visit Sri Nakhon
Khuean Khan Park which is 35% higher than 2017.
C12.3f
(C12.3f) What processes do you have in place to ensure that all of your direct and
indirect activities that influence policy are consistent with your overall climate change
strategy?
PTTEP communicate the sustainability strategy and relevant policy internally and publicly
through various channel i.e. internal announcement, meeting and training, website and
networking activities. For internal communication, we encourage all employees, both staff and
management level, to understand and implement the specific policy and target as well as
climate related issues. For external engagement, we adhere to the stakeholder management
guideline, which providing the company-wide implementation and guidance to all function
groups. To give priority to stakeholder management, the identification and prioritization enables
PTTEP to put in place a proper engagement plan to reach the ultimate goal which is to obtain
stakeholder’s trust. The function who play the important role on stakeholder engagement is
government affairs office, together with the corporate environment management, affected
business units, and strategic planning and sustainable office. Their role is to develop the
company position on the climate related issues and ensure the communication alignment and
compliance with the public policy and target. In order to communicate our expectations on
sustainable development which is including the climate issues, PTTEP has created a
Sustainable Development Booklet that provides a quick overview of how PTTEP plans to
ensure our sustainable growth. This booklet aims to ensure that all PTTEP employees,
subsidiaries, contractors and suppliers and joint venture companies have the same perspective
and general understanding of how to apply sustainability concepts in their day-to-day roles
across the organization and in interactions with peers and stakeholders.
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C12.4
(C12.4) Have you published information about your organization’s response to climate
change and GHG emissions performance for this reporting year in places other than
in your CDP response? If so, please attach the publication(s).
Publication
In mainstream reports, incorporating the TCFD recommendations
Status
Complete
Attach the document
2
2018AnnualReportEN.pdf
2018SDReportEN.pdf
Page/Section reference
Sustainability Report 2018: Page 66-76, 86-89.
Annual Report 2018: Page 9-12, 47-55, 215-217.
Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
Comment
C14. Signoff
C-FI
(C-FI) Use this field to provide any additional information or context that you feel is
relevant to your organization's response. Please note that this field is optional and is
not scored.
C14.1
(C14.1) Provide details for the person that has signed off (approved) your CDP climate
change response.
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Job title Corresponding job category
Row 1 Chief Executive Officer Chief Executive Officer (CEO)
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