Sustainability

Integrated Water Management

Sustainability

Integrated Water Management

Sustainable Development Goals

Opportunities and Challenges Management Approach Highlight performance

Opportunities and Challenges

Water resource is essential to general consumption as well as the agricultural and industrial sector. Water consumption is on a rise due to economic expansion, urbanization, and climate change, which lead to water stress, flood, and water pollution. Hence, businesses need to adapt and innovate for a more efficient water management as a part of responsibility to environment, society, and risk management

PTT recognizes the significance of water management and establishes it as one of the ongoing environmental management issues, which covers water resource conservation, efficient water consumption, reduce water consumption and reuse water withdrawn in accordance with the Circular Economy concept, as well as raise awareness on water values. We ensure our operation and our subsidiaries will not affect water availability as well as fully comply with the laws and water management guidelines of Thailand National Strategy.

Management Approach

Water Resource Management^{GRI 303-1, GRI 303-2}

PTT places great emphasis on systemic water management for both supply and demand. Water management was established as one of the business-level risks with appointed PTT Group Water Management Team comprises of experts in water management and public facilities. The team is assigned to monitor, assess, and report status of water stress region, especially the Eastern region that houses a significant production line that suffered water shortage in 2005. The water management team works with related organizations towards an effective water management system, as well as established short-term and long-term drought risk management plans. PTT Group Water Management Team stipulates effective water management plans by the 3Rs principle (Reduce, Reuse, Recycle) as well as pushed for collaboration and knowledge sharing on water management excellence. The external and internal risk management activities are as follows;

Type	Water Management Activities
External risk management	Assess water risks and impacts on PTT business operations which include the legal risk, the reputation risk, and the physical risk of water quantity and quality using international standardized risk assessment and analysis tools, such as AQUEDUCT, WBCSD Global Water Tool, CERES Aqua Gauge, and Water Footprint Assessment Analyse and formulate risk management plans to minimize water impacts on companies under PTT’s management. A case study was conducted to study potential impacts from 4 months of raw water consumption reduction under three scenarios, namely 10%, 20%, and 30% water reduction. The impact could be as severe as a temporary production halt. Assess and monitor water budget and rainfall continuously to supply data for water management preparation, risk management, and impact minimization for water consumption in the ecosystem, agriculture, fisheries, community, the environment, as well as normal business operations. Cooperate with the Eastern Region Water War Room Working Team comprises of government agencies, Eastern Water Resources Development and Management Plc. Ltd., and private sector’s representatives to monitor, assess, and analyze water risks on the river basin level Monitor water levels in relevant reservoirs, stipulate pre-drought and during drought crisis water management measures, to ensure long-term water availability, as well as consider alternative water sources to increase water-storing capacity, such as building reservoir, installing desalination units, etc. to strengthen water security for PTT Group’s production line, to mitigate impacts in case of regional drought and water shortage, and to reduce allegations towards industrial sector taking water from communities Cooperate and support the development of secured and sustained water management in the Eastern Region, aiming to regulate water reserve in Dok Krai, Nong Pla Lai, and Khlong Yai reservoirs in Rayong, reservoirs for PTT operation sites, to have no less than 240 million cubic meters monitor and support water resource development projects in the EEC to meet 1,000 million cubic meters per year of water demand by 2036 Collaborate with Water and Environment Institute for Sustainability, the Federation of Thai Industries, in driving water management related policies forward, which include short-term and long-term solutions towards water resources sustainability Commit to 2Rs principle (Reserve and Re-Visualize) by monitoring the progress of related government agencies’ water resource development projects
Internal risk management	To formulate strategic plans for water management that are in line with PTT Group’s strategies for climate management and risk management To set the objectives, to assess and to monitor the efficiency of the organization’s water use such as a goal of reducing water intensity by 12.6% for production and by 10% for offices by 2030 when compared to the 2013 base-year intensity, as well as to control and monitor freshwater withdrawal not to exceed 74 million cubic meters in 2022 To enhance the water management as per the circular economy principles, implement the 3Rs (Reduce, Reuse, Recycle) to reduce raw water consumption, to increase recycled water usage, re-use effluent to reduce public water source dependency, such as fresh water from seawater production, development of water treatment innovations, etc.

Type

Water Management Activities

External risk management

Assess water risks and impacts on PTT business operations which include the legal risk, the reputation risk, and the physical risk of water quantity and quality using international standardized risk assessment and analysis tools, such as AQUEDUCT, WBCSD Global Water Tool, CERES Aqua Gauge, and Water Footprint Assessment
Analyse and formulate risk management plans to minimize water impacts on companies under PTT’s management. A case study was conducted to study potential impacts from 4 months of raw water consumption reduction under three scenarios, namely 10%, 20%, and 30% water reduction. The impact could be as severe as a temporary production halt.
Assess and monitor water budget and rainfall continuously to supply data for water management preparation, risk management, and impact minimization for water consumption in the ecosystem, agriculture, fisheries, community, the environment, as well as normal business operations.
Cooperate with the Eastern Region Water War Room Working Team comprises of government agencies, Eastern Water Resources Development and Management Plc. Ltd., and private sector’s representatives to monitor, assess, and analyze water risks on the river basin level
Monitor water levels in relevant reservoirs, stipulate pre-drought and during drought crisis water management measures, to ensure long-term water availability, as well as consider alternative water sources to increase water-storing capacity, such as building reservoir, installing desalination units, etc. to strengthen water security for PTT Group’s production line, to mitigate impacts in case of regional drought and water shortage, and to reduce allegations towards industrial sector taking water from communities
Cooperate and support the development of secured and sustained water management in the Eastern Region, aiming to regulate water reserve in Dok Krai, Nong Pla Lai, and Khlong Yai reservoirs in Rayong, reservoirs for PTT operation sites, to have no less than 240 million cubic meters monitor and support water resource development projects in the EEC to meet 1,000 million cubic meters per year of water demand by 2036
Collaborate with Water and Environment Institute for Sustainability, the Federation of Thai Industries, in driving water management related policies forward, which include short-term and long-term solutions towards water resources sustainability
Commit to 2Rs principle (Reserve and Re-Visualize) by monitoring the progress of related government agencies’ water resource development projects

Internal risk management

To formulate strategic plans for water management that are in line with PTT Group’s strategies for climate management and risk management
To set the objectives, to assess and to monitor the efficiency of the organization’s water use such as a goal of reducing water intensity by 12.6% for production and by 10% for offices by 2030 when compared to the 2013 base-year intensity, as well as to control and monitor freshwater withdrawal not to exceed 74 million cubic meters in 2022
To enhance the water management as per the circular economy principles, implement the 3Rs (Reduce, Reuse, Recycle) to reduce raw water consumption, to increase recycled water usage, re-use effluent to reduce public water source dependency, such as fresh water from seawater production, development of water treatment innovations, etc.

Remarks:

• External risk management includes risks from the facility’s location and other external factors, such as water quantity and budget risk, government policy and laws risk, social risk, etc.
• Internal risk management includes water consumption monitoring and regulation, effluent quality monitoring, etc.
• GC and TOP are currently producing fresh water from seawater in full capacity to feed the production operation as part of the feasibility study to expand generating capacity in order to reduce public water sources’
dependency.

Additionally, PTT is aware of the impact of effluent quality from operational sites on the surrounding communities and the environment. The quality control of wastewater treatment before discharge was implemented by the laws and regulations established by the Ministry of Industry on the notice regarding Industrial Effluent Standards 2017 and the announcement of the Ministry of Natural Resources and Environment on Effluent Standards from Buildings of Certain Types and Sizes 2005. The treatment strictly complies with the measures cited in the Environmental Impact Assessment (EIA) industrial specific reports.

PTT is determined to increase water consumption efficiency to be a part of SSHE Management System, established policies, as well as long-term and yearly goal. PTT is committed to water consumption control both in operations and the offices and focuses on recycling and reuse. The performance of water management is closely monitored and reported to regional executives and assessed regularly. Performances per SSHE targets are reported according to the established governance structure quarterly.

Highlight performance

Progress
Percentage of reused and recycled water against total volume of used water (freshwater) in PTT Group

Year	2018	2019	2020	2021
Performance	6.41	9.18	7.62	6.32

Volume of Water Stored for PTT’s Operations in Rayong
(million cubic meters)

Remark: The scope of data covers 3 main reservoirs, namely Dok Krai, Nong Pla Lai, and Khlong Yai

PTT’s Total Water Withdrawals in 2021 (cubic meters)

Surface Water	Sea Water	Water Supply	Ground Water	Rainwater
23,550	83,247	1,754,194	33,177	116,550

PTT’s Total Water Withdrawals in 2021 (million cubic meters)

Summary of PTT Group Performance Progress

Total Water Withdrawals in 2021 (million cubic meters)	Total Net Freshwater Consumption (million cubic meters)

Remark: The scope of data covers PTT and flagship companies (GC, IRPC, GPSC, PTTEP, TOP, OR).

Actual cost and opportunity costs from water management related grievance (THB)

Year	2018	2019	2020	2021
Cost	0	0	0	0

Key Activities and Projects

PTT Group ran various projects and activities to strengthen water security continuously in response to rising water demands as follow:

Greywater Recycled Prototype Innovation Project^{SDGs 6.3, 6.4, 6.5, 6.a}

PTT piloted Greywater Recycled Innovation Project which treats wastewater from washbasin for reuse with sanitary wares, supporting sustainable development goals regarding efficient water consumption and recycling. The project was piloted in PTT Headquarter area, reused up to 30 liters of US EPA Guideline quality standard water per hour.


	Water Recycled by Grey Water Recycle Prototype

The Research Project on Water Supply Forecast to Support Water Management in Eastern Region^{SDGs 6.3, 6.4, 6.5, 6.a, 17}

PTT Group’s Water Management Team monitored the water situation and forecasted the trend in water supply through long-term climate forecast technology together with a hydrological model for Rayong province in 6 months, 1 year, and 20 years in advance respectively. The study reveals medium to high risk without appropriate water resource management. Therefore, the team participated in the Eastern Region Water War Room Working Team comprised of government agencies, Eastern Water Resources Development and Management Plc. Ltd., and private sector representatives to monitor, assess, and analyze water risks on the river basin level, as well as establish measures. In 2021, the water reserve in the Eastern Region is in a good state. Medium and large reservoirs collected more than 90% of the reserve capacity, providing sufficient water supply for every party in 2021-2022, especially in agriculture, fisheries, industrial, and PTT Group’s business operations without impacting community’s water supply availability.

Promotion of Water Footprint Assessment in Accordance with the ISO 14046^{SDGs 6.5, 6.a}

Water and Environment Institute for Sustainability, Federation of Thai Industries, in collaboration with the Department of Groundwater Resources initiated the water footprint assessment project to promote ISO 14046 establishment in Thailand’s industrial sector. PTT Group’s experts from the Water Management Team participated as technical committee, responsible for assessment standards establishment and a technical supports to PTT’s subsidiaries that joined the project. GC and GPSC’s products were awarded certified Water Footprint label as pioneering companies, contributing to database development to improve production efficiency and knowledge development.

In 2021, PTT Group continues to implement measures and management approaches to ensure efficient water consumption.

The Monitoring of Drought Prevention Measure Implementation in 2021 (As of 20 January 2022)^{SDGs 6.4, 6.a}

Eastern Region Water Situation and Performance in 2021
Prasae reservoir, Rayong has 220.16 million cubic meters of reserved water (74.6%). The 3 main reservoirs in Rayong comprise Nong Pla Lai, Dok Krai, and Khlong Yai, with 242.74 million cubic meters, constituting 88.2%. In 2021, Prasae reservoir together with three main reservoirs in Rayong had sufficient water reserve as well as collected water higher than the 10-year average.

In 2021, PTT group’s Water Management Team cooperated with external parties in exercising drought prevention measures in the Eastern Economic Corridor (EEC). The performances of projects to increase water reserve in Rayong (Nong Pla Lai, Khlong Yai, Prasae reservoirs) and in Chonburi (Bang Phra and Nong Kho reservoirs) between 1 January 2021 – 31 December 2021 are as follow:

1. Diversion from Khlong Saphan to Prasae reservoir by Royal Irrigation Department with an accumulative 9.8 million cubic meters of 18 million cubic meters pumped. The project is currently inactive.
2. Diversion from Prasae reservoir to Nong Pa Lai reservoir by East Water with an accumulation of 22.05 million cubic meters pumped from a planned 22 million cubic meters. This project is currently inactive.
3. Diversion from Prasae reservoir to Khlong Yai reservoir by East Water and PWA with an accumulation of 2.35 million cubic meters pumped from a planned 40 million cubic meters. This project is currently inactive.
4. Channel water from Khlong Nam Hu to Map Ta Phut Industrial Estate by Industrial Estate Authority of Thailand (IEAT) with accumulative 6.35 million cubic meters pumped
5. Diversion from Phra Ong Chaiyanuchit Project to Bang Phra reservoir by PWA during the rainy season with an accumulative 43.88 million cubic meters pumped of 40 million cubic meters planned. The project is currently inactive.
6. Diversion from Bang Prakong River to Bang Phra reservoir by East Water in the rainy season with an accumulative 17.88 million cubic meters pumped of 22 million cubic meters planned. The project is currently inactive.

The Monitoring of Long-term Water Source Development Project in Progress

Khlong Phawa Yai reservoir, Chanthaburi (2017-2023)
Khlong Hang Maeo reservoir, Chanthaburi (2017-2023)
Improvement of Khlong Yai-Nong Pla Lai reservoir network (2019-2022)
Improvement of Khlong Phan Thong-Bang Phra reservoir (2018-2023)
Feasibility study on freshwater from seawater production (2021), final project meeting scheduled in February 2022

Water Management per 3Rs Principles^{SDGs 6.3, 6.6, 6.a, 12.2, 12.4, 12.5}

Modify power plant’s water-cooling system to a closed system to reduce water consumption
Reuse excess heat from Blow-down Tank in cooling water consumption reduction in the process of lowering temperature before discharging effluent to the treatment pond and the use of blow-down water to water plants and trees
Reverse Osmosis Intermediated Cooling Water Reuse
Reuse Condensate in Steam Production
The Unit 5 Gas Separation Plant reuses wastewater from dehydration process as makeup water in the Acid Gas Removal Unit (AGRU), which reduces the volume of makeup water used by 17,500 cubic meters per year
Desalination project by PTT Global Chemical Plc., Ltd. and Thai Oil Plc., Ltd. reduces water consumption by 10%-20%
Feasibility study on Eco Industrial water management for implementation by PTT Group, which reuses treated effluent
Explore and develop Greywater Recycle Prototype to support water consumption reduction by treating wastewater and reuse up to 30 liters of US EPA Guideline standard water per hour.

Establish Control Target and Monitor PTT Group’s Freshwater Withdrawal^{SDGs 6.4, 6.a, 12.2}

PTT and its subsidiaries collaboratively examined and established target for PTT Group’s freshwater withdrawal control and monitor freshwater withdrawal not to exceed 74 million cubic meters in 2022

Water Consumption Risk Projection with AQUEDUCT, WBCSD Global Water Tool, and Water Deprivation^{SDGs 6.4}

Water consumption risk assessment conducted in the Eastern Region, where PTT Group’s main operations are situated, by analysis tool AQUEDUCT shows medium to high risk in 2021. If PTT continues to operate BAU in 2030 and 2040, risk score will increase by 1.4 times.

Future Plan

PTT will continue to push forward projects as planned, such as water consumption reduction and Water Recycle Process Enhancement, Zero Liquid Discharge (ZLD) installation at Unit 7 natural gas separation plant that will start operating in 2025, as well as focusing on emerging risk management elevation in tandem with collaborative projects with government agencies, private sector, and the community to co-exist in harmony.

Sustainability

Integrated Water Management