Project Management Approach

Project Management

PTT recognizes the critical importance of managing projects while addressing the environmental and social impacts that may arise from project execution, affecting both direct and indirect stakeholders. Therefore, PTT ensures that comprehensive environmental impact assessments are conducted and that public consultation processes are in line with relevant laws and regulations. These processes serve as essential channels for promoting awareness, fostering understanding, and providing opportunities for stakeholders to voice their opinions, suggestions, or concerns regarding the project. Furthermore, PTT places strong emphasis on ensuring strict compliance with mitigation measures and ongoing monitoring to manage environmental impacts, as well as adhering to occupational health and safety standards throughout the project lifecycle—before, during, and after the construction phase (operational phase).

Environmental Impact Assessment (EIA)

PTT diligently undertakes the study and preparation of Environmental Impact Assessments (EIA) for all projects that fall under the categories of operations, businesses, or activities mandated by the Notification of Ministry of Natural Resources and Environment's, pursuant to Section 48 of the Enhancement and Conservation of the National Environmental Quality Act (No. 2) B.E. 2561 (A.D. 2018).

To date, large-scale projects within the Master Plan for the Natural Gas Pipeline System, managed by PTT, have completed their EIA studies and received formal approval from the National Environmental Board and the Expert Committee for EIA Reports from the Office of Natural Resources and Environmental Policy and Planning (ONEP), as well as the relevant permitting authorities. These projects include the Fifth Onshore Natural Gas Pipeline Project, and the onshore natural gas pipeline from Bangpakong to the Phra Nakhon Tai Power Plant, which are currently under construction. Consequently, project management under the Master Plan now focuses on overseeing and monitoring the construction phase to ensure full adherence to the conditions specified in the approved EIA reports and the associated environmental safeguards. Compliance with these EIA conditions is reported to the Office of Natural Resources and Environmental Policy and Planning, relevant government agencies, and permitting authorities every six months. In addition, PTT ensures that the project complies with all occupational health and safety regulations in place.

Community Relocation

PTT seeks to avoid implementing projects that would lead to permanent community relocation by carefully designing project layouts and construction routes that minimize impact on land use and properties. The goal is to secure the greatest possible acceptance from the affected communities. PTT follows a comprehensive approach through various stages of the project planning process, which includes conducting environmental impact assessments, ensuring public participation, and considering legal land ownership rights and actual land use by surrounding communities. In cases where relocation is unavoidable or there are no other viable alternatives, PTT will provide clear information to the affected parties and work to ensure understanding and acceptance of the relocation. Additionally, PTT will engage in consultations with those affected to determine fair and appropriate compensation methods, whether in the form of monetary compensation or other means. If the affected individuals choose monetary compensation, PTT will provide reimbursement for damages caused by the demolition of structures and the disruption of livelihood areas. The compensation will be calculated based on the value of the land, buildings, assets, and land development costs, using government appraisals, market survey data, and consultations with the affected parties. If any damage or impact results from construction activities, PTT will take responsibility for repairs and restoration, aiming to return the area to its original condition as closely as possible.

Public Participation^GRI413-1

PTT has established a comprehensive process for gathering feedback from the public and stakeholders on various projects. This process is in accordance with the Notification of the Office of the National Resources and Environmental Policy and Planning regarding public participation in preparing environmental impact assessment (EIA) reports of 2023. The goal is to effectively communicate project information, raise awareness, and ensure the public has an accurate understanding of the project. It also provides stakeholders with insight into the project’s objectives, implementation plans, site selection criteria, expected benefits, potential impacts, and the measures taken to mitigate, rectify, and monitor environmental consequences. The process focuses on engaging all stakeholders by offering opportunities to voice their opinions, suggestions, or concerns regarding the project and its associated environmental mitigation and monitoring measures. Ultimately, the aim is to design and execute the project in a way that minimizes environmental impacts and gains the acceptance of the community, the public, and all relevant stakeholders.

PTT’s Public Participation Process:

• PTT has established a transparent process for collecting public feedback on the project’s implementation, including any operational risks, cultural heritage preservation, and the environmental and social impacts, along with the proposed mitigation measures.
• PTT conducts a thorough review of community data within the project area by collaborating with relevant government agencies. This data is analyzed to identify target groups and stakeholders (Stakeholder Analysis), and to design tailored methods for engaging stakeholders and gathering their feedback (Stakeholder Engagement).
• In preparation for gathering feedback (Preparation Process), PTT ensures the community is well-informed by providing accessible, understandable information about the project (Public Information) and the feedback process. Communication materials, such as brochures and public notices, are used to ensure the public is sufficiently informed to provide meaningful input.
• For projects requiring an EIA, the public feedback process is conducted at least twice: 1. The first round seeks feedback on the project’s details, the scope of the study, and the evaluation of alternatives or site locations. 2. The second round gathers feedback on the draft EIA report, including proposed environmental mitigation measures and monitoring actions. Before each feedback round, PTT ensures thorough outreach to the public, providing clear details on how, when, and where feedback can be submitted. This includes sufficient notice and explanation to ensure the public can fully engage in the process. After both rounds, the feedback outcomes will be summarized and made available to the public.

Community Engagement and Community Development Standards

Community engagement and development, such as the implementation of the Natural Gas Pipeline Project from Bang Pakong to The Phra Nakhon Tai Power Plant, are key priorities for PTT. The Company places significant emphasis on supporting activities and projects across various sectors for relevant stakeholders, including the environment, economy and livelihoods, health and sports, arts, culture and traditions, education, and quality of life. Support for these initiatives is primarily driven by the genuine needs of the community.

PTT has developed a Community Relations and Community Development Guidebook (CD-CR), which outlines the approach for community engagement and development. This guidebook is utilized for planning and executing community involvement processes to ensure that community relations management and stakeholder engagement in project development are carried out consistently across all departments and business units. The Corporate Strategy and Reputation Management & Social Affairs team is responsible for overseeing the execution of these activities, collecting data from stakeholder engagements, and facilitating communication between departments.

PTT evaluates the importance of each community by utilizing a stakeholder map to identify target groups. Based on this mapping, PTT ranks stakeholders according to their needs and the potential impact on business operations. This results in the creation of a comprehensive community database, which allows staff to prioritize actions and effectively respond to the needs of different stakeholder groups in a manner that is both appropriate and impactful.

Community Relations

In project operations, PTT places significant emphasis on engaging with local stakeholders by regularly providing information about project activities to enhance awareness. This is achieved through a variety of communication channels, including brochures, local media, and face-to-face meetings. The Company implements a comprehensive and ongoing community relations strategy to build positive attitudes towards the project among stakeholders, allowing for concerns to be addressed effectively. This approach ensures that the project aligns with stakeholder needs, incorporating their feedback and suggestions into the planning process. Additionally, PTT actively supports and participates in community activities to ensure the project integrates sustainably with the local community.

Community Complaint Management

Number of complaints from local communities:

- Percentage of complaints identified and resolved: 100%
- Percentage of complaints resolved through remediation: 0%

PTT has established effective communication channels to receive feedback and complaints from stakeholders, ensuring a systematic and efficient response throughout all phases of project implementation, including the feasibility study, construction, and operational phases. For large-scale projects, a tripartite committee is formed, consisting of representatives from PTT, relevant stakeholders, and government agencies. The committee monitors the progress of the project and addresses any complaints raised within the community, ensuring impartial resolutions. Additionally, PTT has set up a dedicated complaint hotline (1365) to allow those directly affected by the project to report issues. This hotline coordinates with the relevant departments to resolve complaints promptly and effectively.

Examples of Complaint Channels:
Construction Phase:

- Establishing clear channels for receiving complaints regarding inquiries or impacts from construction throughout the project's duration.
- Assigning dedicated community relations staff on-site to manage local engagement and concerns.
- Communicating information through community leaders to present issues for discussion at the project’s Environmental Impact Monitoring Committee meetings.
- Coordinating with or notifying relevant government or local authorities, such as local administrative centers, for any necessary updates or warnings.
- Accepting complaints submitted directly to the project’s field office.
- Submitting direct complaints to PTT Public Company Limited.
- Facilitating complaints through PTT's Call Center at 1365, Ext. 24.
- Submitting complaints through PTT's official website.

Operational Phase:

- Ensuring the presence of community relations staff on-site during the operational phase to address any concerns.
- Offering emergency contact through the Natural Gas Pipeline System at 1540.

Key Performance Results

Performance Monitoring

PTT has implemented preventive, corrective, and environmental impact monitoring measures in accordance with the EIA report. These measures encompass stakeholder management across all phases of the project—pre-construction, construction, and operational stages. Regular progress reports on EIA compliance are submitted every six months to relevant governmental or regulatory authorities.

Throughout the project, PTT closely monitors and oversees contractor activities on a weekly basis. This includes progress meetings to review project plans, address challenges, and resolve complaints or issues. On-site inspections are conducted regularly, and community relations staff are consistently deployed to engage with local stakeholders and collect feedback or complaints directly from the community.

Measuring Results

PTT has established community engagement scores as a key performance indicator for all large-scale projects. This indicator measures the effectiveness of the organization’s engagement with stakeholders, reflecting the quality of the participatory processes implemented. The performance metrics vary based on the key factors specific to each project. Another crucial indicator is the annual stakeholder survey conducted in the operational areas. The survey results, along with feedback and expectations, are used to inform the development of strategic action plans and relationship-building initiatives to ensure long-term benefits. For example, feedback from surveys has led to improvements in operations, including organizing forums to gather stakeholder input in areas like the natural gas pipeline project. These initiatives include participation in CSR activities in project areas and ongoing efforts to support and care for the community and society alongside the project's operations.

Regarding community relations, PTT has established a community satisfaction index as a key performance indicator. This index evaluates various aspects, including the improvement of community living standards and economic development, safety and environmental management, community engagement activities, and the organization's communication efforts regarding its activities.

Environmental, Social, and Health Impact Management

PTT has established key performance indicators (KPIs) for managing environmental, social, and health impacts, ensuring alignment with the status of the Fifth Onshore Natural Gas Pipeline Project. The project’s management results have been tracked from 2017 to the present. Similarly, the onshore Natural Gas Pipeline Project from Bang Pakong to The Phra Nakhon Tai Power Plant has been monitored from 2022 to the present, as outlined in the table below.

The above projects have successfully completed the Environmental Impact Assessment (EIA) study and report. Currently, the projects are in the process of monitoring compliance with environmental protection, corrective measures, and impact tracking. Additionally, they are ensuring strict adherence to occupational health and safety regulations for contractor labor. Interested parties can access the EIA report and the compliance report regarding the EIA measures for these projects on the website of the Office of Natural Resources and Environmental Policy and Planning (ONEP).

Acknowledgement of Information and Project Approval^{GRI413-1, GRI413-2}

PTT is committed to completing the projects according to the established timeline, ensuring that government agencies, private sectors, stakeholders, and the public maintain a positive perception of the projects. In case of any complaints related to construction activities, PTT will address the issue within 24 hours by coordinating with relevant authorities to verify the facts. The community relations team will engage with the complainants to address and resolve the issue promptly, preventing it from escalating into a crisis, and ensuring quick resolution.

Awareness and Acceptance of the Project (Percent)

As of 2024, PTT is currently executing three major projects, which include: the Fifth Onshore Natural Gas Pipeline Project, the Onshore Natural Gas Pipeline Project from Bang Pakong to The Phra Nakhon Tai Power Plant, the construction of the Natural Gas Separation Plant Unit 7 (GSP 7). Below are the details of these ongoing projects:

Remark: The number of operational areas engaged with the community refers to the areas where the level of community engagement has been assessed.

Project Management Outcomes^GRI413-1

Project Management Outcomes^{SDGs 9.1}

The Fifth Onshore Natural Gas Pipeline Project, and the Onshore Natural Gas Pipeline Project from Bang Pakong to The Phra Nakhon Tai Power Plant are designed to enhance the natural gas transmission capacity of the onshore pipeline network. These projects are intended to meet the growing demand for natural gas at power plants in the metropolitan Bangkok area, as outlined in Thailand’s Power Development Plan (PDP) 2018-2037, Rev. 1. Additionally, they aim to increase the reliability of natural gas supply to the Phra Nakhon Tai Power Plant, Phra Nakhon North Power Plant, and the industrial sector. Furthermore, the construction of Gas Separation Plant (GSP) Unit 7 is intended to replace GSP Unit 1, which has been in operation since 1985, and to accommodate the rising demand for natural gas in various sectors. These projects contribute to supporting Sustainable Development Goal (SDG) 9, Industry Innovation and Infrastructure, which focuses on building resilient infrastructure, fostering sustainable industrialization, and encouraging innovation (Industry Innovation and Infrastructure).

The projects conducted an Environmental Impact Assessment (EIA) and established a process to engage with relevant stakeholders, allowing them to share their opinions, suggestions, and concerns. PTT has actively incorporated the feedback to refine and implement appropriate measures for environmental protection, corrective actions, and ongoing monitoring. Furthermore, the Company has exercised strict oversight and control over the contractor construction workforce to ensure full compliance with occupational health and safety standards. As demonstrated by the project’s management outcomes, these efforts aim to reduce environmental, community, and social impacts, while fostering sustainable operations for all stakeholders involved.