Sustainability

Integrated Water Management

Home Sustainability Environment Integrated Water Management
Sustainability

Integrated Water Management

Sustainable Development Goals
      





Positive and Negative Impacts

Water is a crucial resource essential for both consumption and agriculture, playing a vital role in various industries and farming sectors. Presently, the demand for water is on the rise due to economic expansion, urban development, and climate fluctuations, resulting in issues such as water scarcity, flooding, and pollution. Consequently, businesses across different sectors must quickly adapt, innovate, and improve water management practices to demonstrate their commitment to environmental and social responsibility while effectively managing business risks.

PTT recognizes the pivotal role water plays in its operations, both directly and across its subsidiaries. Acknowledging water as a crucial raw material, the Company understands the necessity for substantial quantities and the potential environmental impact of wastewater discharge. This awareness extends to the profound consequences on local communities, society, and agriculture. Moreover, with climate change exacerbating these challenges, PTT places a premium on integrated water management. This commitment encompasses a range of initiatives, from water conservation and efficient usage to minimizing wastewater generation through reuse. Aligned with the principles of the Circular Economy, these efforts aim to foster a culture of water stewardship, ensuring that PTT's operations uphold community water rights. Importantly, these measures adhere to legal frameworks and national strategies governing water resource management in Thailand.

Objectives/Targets 

PTT establishes strategic goals aimed at improving water usage efficiency, reducing water consumption in high-risk areas, and controlling the escalation of water usage in high-consumption zones, particularly in office buildings and operational facilities.

  • Reduce water intensity (liters per person per day) by 10% in 2030 for office buildings compared to the baseline data of 2013.
  • Control and monitor freshwater withdrawal within the PTT Group. PTT and its subsidiaries have collaboratively studied and set targets for controlling and monitoring freshwater withdrawal within the PTT Group, aiming for a volume limit of no more than 70 million cubic meters in 2024.

Management GuidelinesGRI 303-1, GRI 303-2

PTT’s Water Resources Management Policy 

PTT is dedicated to elevating water efficiency as an integral component of its SSHE management strategy. Long-term and annual policies and objectives are formulated to regulate water withdrawal across production sectors and office facilities, with a primary emphasis on enhancing reuse and recycling practices. Continuous monitoring, measurement, and reporting of operational performance against set targets are carried out for each area and department, ensuring ongoing assessment of efficiency and effectiveness by identifying and assessing of processes, which are key of water consumption, and developing improvement plan to reduce water consumption. Furthermore, sustainability governance structures are established to oversee quarterly progress comprehensively.

Water Resources Management Process

PTT has established protocols for managing water resources both internally and externally, outlined as follows:

Type

Water Management Initiatives
External Risk Management
  • Assessing the risks and water-related impacts on the own operated assets, suppliers, customers in used phase, and local stakeholders involves evaluating both physical factors such as water quantity and quality to forecast future water quantities available and quality-related risks. This assessment employs internationally recognized tools and standards like AQUEDUCT, WBCSD Global Water Tool, CERES Aqua Gauge, and Water Footprint Assessment to determine water-related risks including dependency-related risks, impact-related risks, and projected water availability and quality risks. Additionally, legal and reputational risks to the organization are also considered.
  • To communicate and train for employees, PTT Group has continuously organized knowledge sharing and the promotion of water management practices within the PTT group's Community of Practice (CoP). Regarding to El Nino, PTT Group arranged knowledge sharing in 2023 for risk assessment and mitigation plan sharing to prevent drought and reduce water consumption in operations.
  • Analyzing and drafting risk management plans aim to mitigate water-related impacts across each company within the Group. These plans include scenarios that anticipate the effects of reducing raw water usage over a 4-month period. The analysis encompasses three scenarios: the impact of reducing water usage by 10%, 20%, and 30%. These reductions could significantly disrupt factory production, possibly necessitating temporary shutdowns.
  • Continuously evaluating and monitoring the water landscape, encompassing both groundwater status and rainfall patterns, serves as vital intelligence for readiness in water governance, risk management, and minimizing adverse effects across ecosystems, agriculture, fisheries, communities, environmental spheres, and regular business activities.
  • Engaging actively in the Eastern Region Water Management Committee, composed of governmental bodies, water resource management firms, and development entities in the Eastern Region, alongside private sector representatives. This collaborative effort aims to oversee conditions, evaluate risks, analyze watershed situations, and devise multifaceted strategies. It also involves tracking governmental, private, and local water management policies, such as the formulation of pricing mechanisms and structures for water in the Eastern Economic Corridor (EEC), and the efficient management of water resources within the primary pipelines of the Eastern Region.
  • Consistently monitoring and observing water levels in vital reservoirs, PTT Group proactively devises water management protocols for pre-drought, drought, and long-term water utilization scenarios. This encompasses evaluating substitute water sources and bolstering water storage capacity through initiatives like reservoir construction and seawater desalination plants. These endeavors fortify operational stability within the PTT Group, mitigating impacts during droughts or water scarcity instances while also addressing industrial water competition concerns with local communities.
  • Fostering collaboration and assistance to promote sustainable development and resilience in water management across the Eastern Region, the overarching objective is to regulate water storage volumes for PTT's operational zones in Rayong Province. This includes managing reservoirs such as Dok Krai Reservoir, Nong Pla Lai Reservoir, and Klong Yai Reservoir, totaling at least 240 million cubic meters. Moreover, tracking and supporting water development initiatives within the Eastern Economic Corridor (EEC) to enhance its capacity to meet escalating water demands, targeting 1,000 million cubic meters annually by 2036, as per the government's plan.
  • Engaging with the Water and Environmental Institution for Sustainability of the Federation of Thai Industries (FTI) to actively promote policy directives concerning national water management, addressing both immediate challenges and fostering long-term water resource sustainability.
  • Committed to the principles of Reserve and Re-Visualize (2Rs) by tracking the progress of water source development projects undertaken by relevant agencies.
Internal Risk Management
  • Formulating a comprehensive water management strategy in line with the Group's climate and risk management agendas.
  • Establishing targets, conducting assessments, and tracking the effectiveness of the organization's water utilization. This includes aiming for a reduction of water intensity by 12.6% in manufacturing sectors and 10% in office buildings by 2030 compared to the 2013 baseline data. Additionally, setting objectives to monitor and regulate freshwater withdrawal by the Group, ensuring it remains below 70 million cubic meters by 2023.
  • Advancing water management practices through the principles of the Circular Economy, actively pursuing the 3Rs (Reduce, Reuse, Recycle) to curtail water consumption, enhance water reutilization, and foster the recycling of wastewater. This approach aims to diminish dependency on public water sources, with initiatives encompassing the production of freshwater from seawater and the exploration of innovative wastewater treatment and reuse technologies.

Remark:

• External risk management encompasses factors such as facility location and other external variables, including risks related to water quantity and quality, governmental policies and regulations, social considerations, and more.
•  Internal risk management within the organization involves measures such as controlling and monitoring water usage quantities, tracking the quality of wastewater from treatment systems, etc.
•  Presently, GC and TOP are leveraging existing systems to their full capacity to produce freshwater from seawater for use in manufacturing processes. Additionally, they are exploring options to expand freshwater production from seawater to decrease dependence on public water sources.


Additionally, PTT is acutely aware of the impact its own wastewater quality can have on surrounding communities and the environment. It rigorously monitors and controls wastewater quality before releasing it into the environment, ensuring adherence to standards mandated by regulations such as the Ministry of Industry's 2017 announcement on wastewater discharge standards for factories and the Ministry of Natural Resources and Environment's 2005 announcement on wastewater discharge standards for certain types and sizes of buildings. Moreover, it diligently follows the measures outlined in Environmental Impact Assessments (EIAs) specifically tailored for its facilities.

The results of forecasting water usage risks for the PTT group using tools like AQUEDUCT and WATER RISK FILTER (WRF)SDGs 6.4 indicate that the locations of PTT Group's factories in the Eastern Region pose moderate to high risks of water stress and scarcity. There is a discernible trend towards increased risk in the future if business-as-usual (BAU) practices persist. By 2030, if current practices continue unchanged, the risk is projected to increase by 1.4 times compared to the baseline.

PTT continued to implement the principles of Reduce, Reuse, and Recycle (3Rs) in water management, resulting in significantly higher levels of water reuse in operational activities. This approach has not only minimized the impact on resources but has also mitigated pollution from water pollutants, thereby lessening adverse effects on the livelihoods of communities and the general public.

The risk in EEC area is changed by either impact or likelihood that PTT Group assessed impacts and evaluate likelihood for major operating assets in EEC area since 2021 and reviews and updates the impacts in every year by PTT Group Water Management Team (PTTWT).

In 2023, the impacts on PTT Group’s operation in EEC area decreased by 6.61% from 2022 so the risk might be changed by likelihood. To reduce likelihood of water scarcity and local stakeholders’ concerned, PTTWT has closely monitored situation and communicated with stakeholders in the area to mitigate likelihood of water scarcity and local stakeholders’ concerned. In additional, PTTWT also monitors and updates water-related regulatory changes & pricing structure to prevent future impacts on PTT Group water management.

Key Projects/Initiatives

3R-based Water ManagementSDGs 6.3, 6.4, 6.5, 6.a 

PTT and its subsidiaries have embraced the principles of the 3Rs to continually enhance water management efficiency at the source, exemplified by significant technology adoption and key projects, including:

  • Transitioning power plant cooling systems from open to closed systems, resulting in decreased water consumption.
  • Harnessing residual heat energy from blow-down tanks, such as reducing the volume of cooling water required to lower temperatures prior to discharge into wastewater treatment plants and utilizing blow-down water for tree irrigation.
  • Implementing Reverse Osmosis Intermediated initiatives to recycle water for cooling processes, maximizing its utility.
  • Repurposing condensate water for use in steam production processes.
  • The Fifth Gas Separation Plant effectively repurposes wastewater from the dehydration process by using it as makeup water in the Acid Gas Removal Unit (AGRU), resulting in a notable reduction of makeup water by 17,500 cubic meters annually.
  • Desalination initiatives led by PTT Global Chemical Public Company Limited and Thai Oil Public Company Limited exhibit potential water consumption reductions of up to 10-20%.
  • Exploring the viability of water resource management through eco-industrial systems, which involves treating wastewater for reuse within the PTT Group's water management strategies.
  • Research, development, and expansion of Greywater Recycle system innovations to support water usage reduction objectives by treating and recycling wastewater. This system can recycle up to 90 liters per hour with water quality compliant with the US EPA Guidelines.
  • Advancing Rainwater Treatment systems, an innovative approach to collect and enhance the quality of rainwater for cooling tower use, serving as an eco-friendly alternative to tap water. This system provided  the potential to significantly reduce tap water consumption by up to 1,000 cubic meters per year.
Greywater Recycle Prototype InnovationSDGs 6.3, 6.4, 6.5, 6.a 
The PTT Innovation Institute has undertaken research and development to create a prototype project known as Greywater Recycle Innovation. This initiative aims to treat and recycle water used in handwashing for reuse in sanitary facilities. The pilot project was implemented in the vicinity of the PTT Headquarters. The innovative solution is capable of recycling up to 90 liters of water per hour, meeting the water quality standards set by the US EPA Guideline. In 2023, this project successfully reused water in office buildings, resulting in a reduction of 10 cubic meters of tap water consumption.


The Promotion of Water Footprint Assessment according the ISO 14046 StandardSDGs 6.5, 6.a
The Water and Environmental Institution for Sustainability of the Federation of Thai Industries, in collaboration with the Department of Groundwater Resources, has launched a project to evaluate water footprint throughout products’ life cycle, aiming to promote the ISO 14046 standard within Thailand's industrial sector. Experts from PTT Group's water management working group participate as technical committee members to establish assessment standards and offer technical support to the PTT Group in joining the project and obtaining GC and GPSC certification of the Water Footprint label. This endeavor not only fosters the development of water usage databases for process improvement but also enhances knowledge to benefit other companies within the PTT Group in the future.

In 2023, the PTT Group remains committed to implementing these measures and guidelines consistently to ensure the efficient utilization of water resources across the group.
Rainwater Treatment System

In 2023, the PTT Innovation Institute conducted a study and spearheaded the development of the Rainwater Treatment System project. This innovative initiative involves the collection of rainwater and its purification to meet the quality standards required for use in cooling towers. Utilizing state-of-the-art Multimedia Filter Filtration (MMF) technology and UV Disinfection systems, it effectively eliminates impurities, coloration, odors, and various pathogens, ensuring the water's suitability for cooling tower operations.

This meticulously designed system not only substantially reduces tap water consumption in office buildings by up to 1,000 cubic meters annually but also integrates IoT technology for seamless control and monitoring via a dedicated mobile application. Presently, the system has been successfully installed and operational at PTT's headquarters since June 2023. Effective from June 2023 from monitoring operations. It was found that a total of 136 cubic meters of used water can be recycled, equivalent to 15.5 liters per hour.


Installation of the Zero Liquid Discharge (ZLD) Technology at the Under-Construction Unit 7 Gas Separation Plant
Gas Separation Plant Unit 7 has initiated a plan to implement Zero Liquid Discharge (ZLD) technology. This innovative technology recycles water that has undergone wastewater treatment, ensuring its reuse within the system without any discharge outside. As a result, water consumption is significantly reduced compared to Gas Separation Plant Unit 1.

Strategic Water Resource Management in the Eastern RegionGRI 303-1, GRI 303-2

The Water Resource Management initiative aims to address both risks and opportunities within the strategic zones of the PTT Group, particularly focusing on Thailand's Eastern Region, including Rayong and Chonburi provinces. These areas have previously experienced water scarcity issues in 2005 and 2020. In response, PTT established the PTT Group Central Water Management project as part of its downstream petroleum business segment. This project have a water-related risk management measure/ action plan and entails collaboration with water management experts and the public infrastructure systems of companies within the PTT Group, alongside relevant government agencies, private entities, and local communities. The project's objectives are to systematically manage water resources by conducting risk and opportunity assessments, developing drought risk management plans for both short and long terms, and monitoring, evaluating, and forecasting water situations in various regions. It also involves implementing water resource management strategies based on the principles of Reduce, Reuse, Recycle (3Rs) and efficient wastewater management plans. Moreover, the project fosters cooperation and knowledge-sharing with high-ranking executives and the PTT Management team in  a consistent manner. Furthermore, the project entails monitoring water sources, coordinating with relevant stakeholders, and executing strategic water-related initiatives and businesses, examining the feasibility and cost-effectiveness of implementing initiatives to enhance water resource management strategically within the Eastern region. Some of these initiatives may offer added benefits beyond just improving water efficiency, such as reducing energy consumption or minimizing losses.

A Study on Improving of Water Utility Efficiency at PTT Group’s Facilitiesater
PTT, in collaboration with its subsidiaries, undertook a comprehensive study to enhance water resource efficiency. This initiative involved compiling data from pilot plants involved in the study to evaluate water usage effectiveness and to analyze avenues for improvement. Additionally, the study delved into the feasibility and cost-effectiveness of implementing projects aimed at enhancing water efficiency in each pilot plant that showed interest and had suitable technical capabilities. Some of these projects yielded extra benefits beyond just improving water efficiency, such as reductions in energy consumption and waste.
Knowledge Sharing Activities on Technology and Process Improvement Measures to Enhance Water Efficiency for the PTT Group
PTT organized activities for knowledge exchange and the promotion of water management practices within the PTT group's Community of Practice (CoP): Water Management. These activities were carried out continuously. In 2023, two notable events took place:
  • A knowledge-sharing session and site visits to water treatment plants employing Electro De-Ionization (EDI) technology. EDI serves as an alternative to conventional processes widely used in most facilities. This technology helps alleviate operational constraints by reducing chemical usage, minimizing wastewater generation, ensuring continuous water production, and simplifying system maintenance.
  • Site visits were conducted to major industrial water service providers during the Eastern Region's pipeline transmission transition period. The aim was to boost confidence among the PTT Group, which are major water users potentially impacted by the pipeline transmission changes in late 2023.
Water Excellent Contest 2023
PTT conducted the Water Excellent Contest 2023 within the PTT Group to assess water use and identify area of improvement, to advocate for water conservation, optimize water utilization efficiency, and foster awareness of the importance of judicious water usage, especially in the Group's production domains. Furthermore, it served as a platform for knowledge exchange on water management, encompassing conservation efforts and alignment with Circular Economy principles. In 2023, the contest saw the participation of 5 projects from diverse units and companies within the PTT Group. These initiatives collectively achieved a reduction in freshwater consumption by 2.85 million cubic meters annually.
  • The Reduction in Raw Water Usage through The Recovery of Seal/ Condensate Water and The Increase in CCW Cycle – GC
  • Way to Optimize Water Consumption During “Water Crisis 2020” – GC
  • Reduce Make Up Water of Cooling Tower (Reduce Ca-Hardness in Potable Water) – IRPC
  • Proactive Water Conservation Campaign – TOP
  • Install Line Cooling Return for Water Spray Main Blowdown Tank – GPSC
Water Business
The water management initiative within the PTT Group outlines strategies for venturing into the water sector with the aim of enhancing the Group's proficiency in water management, covering both water supply and demand aspects. This is achieved through collaborative endeavors with business partners to bolster the group's water resilience sustainably, while also contributing to revenue generation for PTT.

Collaborations with Partners and Networks

The Water and Environment Institute for Sustainability, The Federation of Thai Industries
The executives of the PTT Group have been steadfastly engaged in collaborative efforts with water and environmental institutions to promote sustainability, particularly with the Thai Chamber of Commerce and Industry. Throughout 2023, they diligently monitored water management issues in the Eastern Region, foreseeing potential impacts on the Group's operations. They noted anomalies such as below-average rainfall in certain areas and the looming possibility of water shortages in 2023-2024. Additionally, they tackled challenges related to the development of the Eastern Economic Corridor (EEC) alongside the region's constrained water resources. The fragmented management of the current water pipeline network, with multiple operators, has led to a lack of coherence in overall water management practices. Furthermore, ongoing legislation aims to enforce water usage fees as per the Water Resources Act, B.E. 2561 (A.D. 2018), starting in 2018. PTT actively collaborates with the Thai Chamber of Commerce and Industry to monitor, advocate for, and address industry concerns, conveying these issues to government agencies. Throughout 2023, they engaged in dialogues with various government bodies and developed practical proposals for sustainable water management to bolster Thailand's industrial sector, presenting these proposals to the government for consideration.

Urgent:

  • Formation of a Joint Public-Private Committee (PPJC) for Water Management, comprising representatives from both the public and private sectors.
  • Establishment of a Regulatory Committee to oversee industrial water management and pipeline networks in the Eastern Economic Corridor (EEC).
  • Allocation of government funds to ensure the readiness of water pumping systems between reservoirs, address ambiguous water allocation issues, and prevent adverse impacts on water users regarding both quantity and quality during the transition period of pipeline delivery managed by the Department of Treasury.
Medium to Long-Term:
  • Enhance water resources and manage water networks in the Eastern region to foster investor confidence. This includes projects like Wang Tanode Reservoir in Chanthaburi Province and the implementation of RO Recycle systems for treating community wastewater, which can then be repurposed in nearby industrial zones. Pattaya's wastewater can serve as a testing ground for innovative solutions (Sandbox).
  • Review and refine the draft ministerial regulations under the Water Resources Act, focusing on adjustments to water fee collection criteria. This entails analyzing water tariff structures outlined in the Water Resources Act, B.E. 2561 (A.D. 2018), under the oversight of the Department of Water Resources. Consider exemptions for activities promoting local water security and minimizing community impacts, such as utilizing seawater as an alternative source or implementing water storage initiatives to bolster community reserves. Additionally, establish an industrial water fund aimed at encouraging efficient water utilization, etc.

Key Performance

Summary of PTT’s progress in operations:

Percentage of PTT’s reused and recycled water volume to total water withdrawal (freshwater)

Year2020202120222023
Performance 7.62 6.32 8.11 6.89

Volume of water stored for PTT’s operations in Rayong (million cubic meters)

Remark:

The data encompasses three primary reservoirs in Rayong, namely Dok Krai Reservoir, Nong Pla Lai Reservoir, and Klong Yai Reservoir

Water Consumption in areas with water stress (e.g. <1700 m3/ (person*year)
Unit
2020
2021
2022
2023
Total net freshwater consumption in water-stressed areas (Total water withdrawals – Total waterdischarges) Million cubic Meters 46.93 50.62 57.37 52.94

Actual expenses and opportunity costs (e.g., lost revenue) from violations related to water management (in THB)

Year2020202120222023
Expenses 0 0 0 0

PTT Performance Data: Environment