Sustainability

Project Management

Sustainability

Project Management

PTT values the importance of social, environmental and health impact management in all projects. This ensures that operations throughout the project's lifecycle, before-, during-, and after- operations are under controls to avoid causing negative impacts on society and the environment. This allows co-existence on a sustainable footing with local communities. By conducting impact assessments, defining prevention, mitigation, and monitoring measures to oversee contractors and employees' practices, PTT can ensure that projects are strictly in line with established procedures and measures.


Environmental, Social and Health Impact Analysis

PTT conducts Environmental, Social and Health Impact studies for all projects. These studies are within the scope of the Environmental Impact Assessment (EIA) preparation process, required by law and must be prepared in compliance with the criteria, methodology, regulations and guidelines on EIA reports under the Notification of the Ministry of Natural Resources and Environment and other relevant laws. In addition, in case of project expansion or modification, EIAs must be reviewed for compliance with conditions attached in the annex of the previously approved EIA report. The study and impact analysis are jointly carried out by academic institutions or agencies registered with the Office of Natural Resources and Environmental Policy and Planning (ONEP). The assessment includes social, environmental, and health surveys as well as engagement with stakeholder groups in order to use the information collected to assess potential impacts and identify preventive mitigation and monitoring measures prior to the submission of the EIA report to the ONEP and relevant agencies for approval. A third party organization conducts a compliance evaluation of monitoring measures. The results are reported to the ONEP and other relevant agencies every six months throughout the project life.


Public Consultation

PTT conducts public consultation for all projects to disseminate and disclose information about the project's EIA report preparation to relevant stakeholders. Communication covers issues including project overview and information, potential impacts, as well as mitigation and monitoring measures for environmental, social, and health impacts. All stakeholders are encouraged to engage by providing their opinions and recommendations with regard to project development, in order to generate useful information for preparing the mitigation and monitoring measures for the social, environmental and health impact assessment.

PTT requires that all of its major capital projects conduct public participation by adopting the guidelines on public consultation developed by the Office of the Prime Minister. PTT encourages all stakeholders to share their opinions, while also taking into consideration the comments and concerns of stakeholders to formulate preventive and mitigation measures to minimize concerns relating to negative impacts and conflicts from project operation. In addition, community understanding and attitude measurements toward project operations are measured through questionnaire surveys, the findings of which will then be incorporated into future project planning.


PTT identifies participation procedures for public consultation as follows:

  • Disseminate and present the project's preliminary information;
  • Organize a public hearing with stakeholders such as communities in the project area, relevant local government agencies, and private sector organizations;
  • Present the best alternative option based on stakeholders' feedback, and measures for reducing initial environmental impacts;
  • Explain the construction procedures for each project and mitigation measures, as well as organize public hearings to gauge the opinions/concerns of stakeholders in order to be informed on how to resolve identified conflicts and minimize potential conflicts arising from the project operation, which may affect people's well-being and have a negative impact on the community in the project area; and
  • Resolve issues and follow up on any complaints resulting from the construction.

Community Resettlement

PTT avoids operating projects that require permanent community resettlement. Locations and routes for construction are designed to avoid or minimize disturbance to land use and property to the minimum level in order to gain acceptance from communities through different engagement processes, including the EIA study and public consultation. In case no alternatives are available, PTT provides information to and builds the understanding of the affected people in order to gain their acceptance. Expenses are provided to compensate for the dismantling of homes and any areas needed for making a living as well as for the restoration of livelihood areas and rehabilitation.


Performance Monitoring

PTT defines appropriate monitoring processes to ensure that preventive mitigation and monitoring measures for social, environmental and health impacts are thoroughly implemented in all projects, as described in the EIA report. Performance is communicated to relevant organizations and stakeholders through channels, such as focus group meetings, individual meetings, public hearings in villages, and information disclosure via government agencies' websites such as those of the Center of Public Service and the Office of Natural Resources and Environmental Policy and Planning (ONEP).


Community Relations

Stakeholder engagement is a process which provides PTT with information that facilitates understanding of opinions, needs and concerns with regard to impacts on or modification to the project area as a result of project development. Stakeholder engagement illustrates the collective rights of communities in the project area, and builds a relationship with them collectively as well as with individual members by engaging with the communities in all kinds of activities. PTT collects each community's primary information, suggestions and concerns for due consideration in the preparation of appropriate mitigation measures for environmental, social and health impacts, which are then communicated to stakeholders.


Community Engagement and Development Standards

PTT established the relationship operational guideline that outlines the Community Development and Community Relations Guidebook (CD-CR) for planning and implementing community engagement to ensure that community relations management with stakeholders follows the same procedure and standard for all departments in all business units during the project development period. The Corporate Social Responsibility (CSR) Department is responsible for implementing and collecting information from stakeholder engagement activities and for maintaining communication between functions.

PTT analyzes important issues of each community by adopting stakeholder mapping to identify target groups and stakeholders. Consequently, stakeholder prioritization is analyzed according to the level of their needs and influence on PTT business operations in order to form a community database. This enables PTT to respond appropriately to each stakeholder group.


Performance Measurement

PTT defines the Community Engagement Score (CES) as an indicator for all major capital projects. The indicator reflects the effectiveness of the stakeholder engagement process. Performance indicators vary depending on the significant factors of each project. Another important indicator is a survey of stakeholder opinions in communities surrounding the operational area. The survey's results, suggestions and identified expectations are taken into account when developing operational strategies in order to create long-term benefits.

For community relations, PTT defines the Community Satisfaction Index as a performance indicator. The Community Satisfaction Index consists of an assessment of the development of economic and living standards, safety and environmental operation performance, community relations and communication of the organization's activities.


Community Grievance Mechanism

PTT has defined the approaches and communication channels for gathering opinions and grievances of stakeholders and communities. PTT systematically and efficiently responds to complaints at all stages of the project lifecycle before, during and after project development. For major capital projects, the channels for addressing grievances are through the tripartite committee, consisted of PTT, representatives of relevant stakeholders, and government agencies.




Capital Project Management

Progress against Plan

Plan2018 target2018 Accomplishments2019 target
Control, monitor and verify the implementation of environmental standards Control, monitor, and verify the implementation of environmental standards of all projects under construction phase (100%) 100% 100%
Publish project information to create stakeholder confidence in project Achieve project acknowledgement and project acceptance of more than 60% from respondents surveyed during the EIA/ER study 82.54 60

Remark: Environmental Impact Assessment Report (EIA) is presented to the Office of Natural Resources and Environmental Policy and Planning for consideration. Environment Report is presented to the Department of Energy Business for consideration.


Capital project management is embedded in every phase of a project to manage social, environmental and health impacts (non-technical risks). Thus, building confidence and gaining acceptance from stakeholders resulting in a continuous business development that is also sustainable.


Management Approach

  • Comply with relevant laws and regulations; effectively manage cost control and project schedule as planned.
  • Define preventive and mitigation measures to manage social and environmental concerns from communities, and regularly engage with communities to reduce concerns from the operation.

The ultimate goal of a project operation is to complete it within the designated timeframe and budget with quality and conforming to related laws and regulations. PTT, therefore on the critical path to reduce the risk of project development within control as much as possible


Environmental, Social and Health Impact Assessment

The goal of project management is to carry out a project within the designated timeframe while obtaining acceptance from the public. In the case of any impact from project implementation or any complaints received, a monitoring process will begin within 24 hours to mitigate such impacts to manageable levels. Additionally, relevant departments will be immediately contacted to monitor and address any issues as soon as possible.

Number of Development Projects
Managing Social ImpactsNumber of Projects in 2018
Total number of projects 3
Number of projects with community consultations 3
% of development projects with community consultations to total number of projects 100
Current Production Assets
Managing Social ImpactsNumber of Projects in 2018
Number of current production assets 37
% of current production assets with community consultations 37
% of current production assets with community consultations to total number of projects 100

Remark: Total number of development projects and current production assets was derived from project sites with Community Engagement Surveys.



2015201620172018
% of acknowledged information 69.6 81.3 81.3 84.14
% of project acceptance 87.5 74.1 85.5 80.94

In 2018, PTT completed Phase 2 of the Nakhon Ratchasima on-shore natural gas pipeline project according to the plan for the 4th quarter. Currently, the project is testing safety systems for Onshore Gas Transmission Pipeline No.5 and Onshore Gas Transmission Pipeline No.6 Ratchaburi Gas Controlling Station – Wang Noi (RA #6). Details of the operation are as follows.


Onshore Gas Transmission Pipeline Nakhon Ratchasima – Phase 2

PTT finished executing Phase 2 of the Nakon Ratchasima on-shore natural gas pipeline according to the planned target for the 4th quarter of 2018. Currently, the project is testing required safety systems. Natural gas will be distributed to customers as planned. Nonetheless, Community Engagement Score for this project is in the "good" level with an average score of 4.00 from 5.00.


Onshore Gas Transmission Pipeline No.6 Ratchaburi Gas Controlling Station – Wang Noi (RA #6)

For the Onshore Gas Transmission Pipeline No.6 Ratchaburi Gas Controlling Station – Wang Noi (RA #6), this project's Environmental Impact Assessment report has been completed and presented to the Office of Natural Resources and Environmental Policy and Planning (ONEP) for consideration. The EIA report was approved by the EIA expert on 4th May 2017 and National Environmental Board Committee on 6th July 2017. Construction work for the pipeline initiated in September 2017 and is expected to be completed by 2020. The Community Engagement Score for this project is in the "good" level with an average score of 3.97 from the target of 3.50.


Natural Gas Transmission Pipeline No. 5 Project

The Environmental Impact Assessment report of this project has been completed and presented to the Office of Natural Resources and Environmental Policy and Planning (ONEP) for consideration. The EIA report was approved by the EIA expert on 27th June 2017 and National Environmental Board Committee on 6th September 2017. Construction started since January 2018 and is expected to be completed by 2021. The Community Engagement Score for this project is in the "good" level with an average score of 3.89 from the target of 3.50

  • Every project has completed the environmental, social and health impact assessment (ESHIA).
  • Every project has conducted the public consultation at least 2 times per project site.
  • Every project has implemented environmental monitoring programs; Environmental Impact Assessment (EIA) and Environmental Reporting (ER).

Eastern Economic Corridor of Innovation (EECi) at Wangchan Valley

The Wangchan Valley Development Project for the Eastern Economic Corridor of Innovation was initiated to create a new an appropriate innovative platform for the Eastern Economic Corridor. Hence, helping to promote research and innovations between local authorities, private sectors, universities and communities in the local area. Directly resulting in an elevation of existing industries, creating opportunities for new industries and increasing the well-being of communities in the local area through technology and innovation. Ultimately, leading the country to becoming an innovative country. Committees of the Eastern Economic Corridor of Innovation favored the proposal of setting 528.3 hectares of land around PTT's Wangchan Valley, Wangchan Sub-district in Rayong Province in becoming " Development Zone: Eastern Economic Corridor of Innovation". Whereby the National Science and Technology Development Agency under the Ministry of Science and Technology signed the agreement with PTT in planning and managing the EECi at Wangchan Valley on the 15th December 2017.

Consequently, in 2018, PTT organized PTT Group's first Preliminary Strategic Environmental Assessment (Preliminary SEA) to develop and enhance the EECi project. This is achieved by setting out a master plan to analyze the carrying capacity for pollutants for targeted projects and industries that should be supported in the Newly Area-based Development project. The master plan outlines operation limitations as well as the engagement process used for listening to community's concerns at all stages of the study. Additionally, the plan offers options and frameworks for mitigating and monitoring impacts resulting from the economy, society and environment. With the aim to sustainably develop fundamental capabilities, identify boundaries of the area and manage natural resources accordingly. Hence, the plan allows for the mentioned information to be integrated with the Strategic Environmental Assessment in which the local authorities are required to operate in line with the 2018-2021 Eastern Economic Corridor of Innovation's Environmental Plan. In addition to the related Environmental Impact Assessment for projects that will be developed in the future.