UOBKayHian Securities (Thailand) (UOBKH) highlighted that the Ministry of Energy’s strong backing of Carbon Capture and Storage (CCS) projects is a positive for PTT Exploration and Production Public Company Limited (SET: PTTEP) and the broader power generation sector.
This comes as Thailand accelerates its ambition to reach net-zero emissions by 2050, moving the deadline forward from the previous 2065 target.
According to UOBKH, CCS technology plays an essential role in carbon absorption and storage. The latest CCS proposals have already been submitted to the parliament and are featured prominently in the upcoming Power Development Plan (PDP) 2025.
The brokerage firm believes these actions could unlock regulatory barriers, enabling CCS projects to fully advance towards commercial operations, particularly as new state-backed incentives are introduced.
Thailand is considered well-positioned for large-scale CCS deployment. In a recent collaboration, the Ministry of Energy partnered with Japan to survey offshore areas, revealing a potential carbon storage capacity of 7 billion tonnes per year.
Such developments could act as a catalyst for PTTEP to accelerate its CCS ventures into the commercial phase. The analyst notes key projects, namely:
- Arthit Field CCS: PTTEP’s Arthit Field is poised to become the first large-scale CCS project in Thailand, with a final investment decision (FID) expected in 2025. The site could store around 1 million tonnes of CO₂ annually.
- Eastern CCS Hub: The hubs in Rayong and Chonburi are in the early planning and feasibility study stages, aiming to support multiple factories and shared infrastructure.
- MOU Projects: Ongoing feasibility studies include a PTTEP partnership with Japan’s INPEX and JGC Holdings to explore CCS opportunities in Thailand, as well as a collaboration between EGAT and Shell to examine Carbon Capture, Utilisation, and Storage (CCUS) solutions.
UOBKH sees these developments as a clear market positive, giving a boost to PTTEP and possibly unlocking new growth avenues for Thailand’s energy and power sectors.
