Amid the global energy transition, the debate over choosing between "old and new energy" never ceases. However, Thailand's state-owned oil giant PTT recently provided a clear answer in its 2026 mid-term strategy report: instead of choosing one, pursue both tracks in parallel. On July 26, PTT held an investment analysis meeting in Bangkok, announcing increased investments in both liquefied natural gas (LNG) and renewable energy over the next five years to build a more resilient and sustainable energy portfolio. This strategic choice not only concerns corporate profitability but also reflects the pragmatic balance many emerging economies strike between carbon neutrality goals and real energy needs.
Strategic Background: Dual Pressures of Energy Security and Carbon Neutrality
As the second-largest economy in Southeast Asia, Thailand relies heavily on energy imports. In 2025, fossil fuels still accounted for 78% of Thailand's primary energy consumption, with natural gas power generation constituting over 55% of the national electricity mix. Meanwhile, under the Paris Agreement framework, Thailand has committed to achieving carbon neutrality by 2050, requiring significant reductions in greenhouse gas emissions. Facing the challenge of ensuring energy security while driving green transformation, PTT has established "synergistic old and new energy" as its core strategy.
PTT President and CEO Atti Uirasuwan stated at the meeting: "We cannot abandon traditional energy overnight because the economy and society cannot withstand the risk of disruption. But we must accelerate the deployment of clean technologies. Two-way investment is not contradictory; it is the most robust path to net-zero emissions." He further noted that fossil fuels will continue to play a "stabilizer" role during the transition, especially while the intermittency of renewables remains unresolved.
Natural Gas: Transition Bridge and Peak-Shaving Tool
In PTT's new plan, natural gas is positioned as a "transition fuel" and "peak-shaving power source." The group plans to increase LNG import capacity by 30% by 2030 and invest $1.8 billion to expand the Map Ta Phut LNG receiving terminal in Rayong Province. At the same time, PTT will promote complementarity between gas-fired power plants and solar\/wind projects, ensuring 24\/7 stable power supply through smart grid dispatch.
Industry analysts point out that natural gas reduces carbon emissions by about 50% compared to coal, and gas-fired plants have flexible start-stop capabilities, making them ideal partners for renewables. A study by the International Energy Agency (IEA) shows that Southeast Asia's natural gas demand will grow 40% by 2030, with Thailand accounting for about a quarter. PTT's move aligns with regional trends and cements its position as Southeast Asia's largest natural gas company.
- Investment Scale: From 2026 to 2031, PTT plans to invest approximately $6 billion in natural gas infrastructure.
- Key Projects: Expand Map Ta Phut LNG terminal to 20 million tons annual capacity; sign a long-term LNG purchase agreement with Qatar Energy.
Renewable Energy: Long-Term Growth Engine and Decarbonization Core
On the other hand, PTT is entering the renewable energy sector with unprecedented intensity. Its subsidiary PTT New Energy plans to launch five large-scale solar farms and two offshore wind projects by 2026, aiming to increase renewable installed capacity from the current 2.3 GW to 12 GW by 2030. These projects are mainly located in northeastern and eastern coastal regions, developed under an "agrivoltaic" model in cooperation with local communities to improve land use efficiency.
Notably, PTT is also actively deploying hydrogen and carbon capture technologies. Its blue hydrogen pilot project with Japan's Mitsubishi Heavy Industries is expected to start production in 2027 with an annual capacity of 50,000 tons, serving as industrial fuel and power generation feedstock. PTT aims to reduce group-wide carbon emission intensity by 25% by 2030 compared to 2020 levels.
Chawarit Thongcharen, CEO of PTT New Energy, said: "We see global capital flowing toward green projects. By accelerating renewable deployment, we not only reduce our carbon footprint but also gain lower financing costs and new revenue sources." It is estimated that by 2030, the renewable segment will contribute over 15% of PTT's total profit, compared to just 5% currently.
Economics and Competitiveness: The Underlying Logic of the Dual-Track Strategy
From an economic perspective, PTT's dual-track strategy of old and new energy is clearly rational. On one hand, traditional oil and gas remain PTT's cash flow backbone, contributing 75% of group revenue in 2025. By improving operational efficiency and arbitrage management, PTT can steadily generate profits to fund new energy investments. On the other hand, thanks to technological progress and scale effects, the levelized cost of solar and wind power has fallen dramatically—in some parts of Thailand, it is already lower than gas-fired power. PTT estimates that by 2028, its renewable projects will achieve an internal rate of return (IRR) of 10%-12%, making them commercially competitive.
"Don't view old and new energy as a zero-sum game," emphasized Stephen Varivani, Director of Thailand's Energy Policy Research Center. "PTT's strategy is actually risk management: by diversifying investments, it hedges against fossil fuel price volatility while capturing green growth dividends. For investors, this hybrid mix reduces the volatility of a single bet." The center's research shows that energy companies holding both oil\/gas and renewable assets saw 30% lower stock price volatility and 8% higher average returns between 2020 and 2025 compared to pure oil and gas companies.
International Perspective: Lessons and Inspiration
PTT's dual-track strategy is not unique. European oil majors like Shell and BP are also pursuing a mix of "oil and gas + clean energy." However, Southeast Asia's energy structure gives PTT's path a certain demonstration effect—unlike Europe which focuses on wind and solar, Southeast Asia must attach high importance to the role of natural gas during the transition. Thai Prime Minister and Finance Minister Srettha Thavisin stated at a recent energy forum: "We support PTT's strategy, which aligns with the national '4.0' development plan. Energy transition must be inclusive and orderly, and must not cause poverty or unemployment."
Nevertheless, challenges remain. Analysts note that PTT needs to guard against "lock-in effects," avoiding overinvestment in natural gas infrastructure that delays breakthroughs in zero-carbon technologies. In addition, the pace of reform in Thailand's electricity market will affect the integration and absorption of renewables. Currently, Thailand's market liberalization is limited, and grid connection approval cycles are long. PTT says it has reached an agreement with the Electricity Generating Authority of Thailand to jointly build a smart grid pilot to increase renewable hosting capacity.
Conclusion: The Art of Balance Leads the Energy Future
PTT's announced dual-track strategy provides a vivid answer to "why invest in both old and new energy": between the long-term vision of carbon neutrality and short-term economic growth needs, enterprises must build a bridge called "synergy." This bridge is not a simple compromise but a precise calculation based on technology, economics, and social factors. For investors, focusing on the balance between old and new energy at companies like PTT may offer greater long-term value than betting solely on one track.
As the global energy landscape undergoes profound transformation, it is foreseeable that energy giants like PTT will continue adjusting course. The model of "developing both old and new, using old to nurture new, and gradually transitioning" is likely to become the mainstream paradigm for energy transition in emerging economies. After all, there is more than one path to net-zero emissions; the key is to walk steadily and endure over the long term.
