Morning analysts, fund managers, executives and PTT staff. I'm Wisanu from IR. Welcome to the second quarter analyst meeting 2021. In light of the pandemic, we are still organizing this session online for everybody's safety. You can follow us via Facebook Live in both Thai and English. We have simultaneous interpretation available to ensure equal access to information. Also through Microsoft Team. PTT Workplace for all PTT staff. After the session, we will open floor for questions. You can ask questions via MS Team, Facebook Live and their chatbox features you are familiar with. We will start with the summary of operating results and then the CEO will share with you CEO's new strategic direction and we close with Q&A. I would like to invite Khun Auttapol Rerkpiboon, CEO and Khun Phannalin Mahawongtikul, the CFO. Please.
Good morning. Dear fund managers, analysts.
Today, we are going to report results of half year 2021. May I start straight away? Next slide, please. These are key activities during the second quarter of 2021. We changed the approach of presentation a little bit. We put up something that looks like doughnut divided into core business and future energy and beyond energy of the future. I will elaborate on Future Energy and Beyond. Let me start with core business. PTT and our subsidiary bought shares of GPSC from GC. We increased the stake by 12.73% involving THB 25 billion investment fund. Following the purchase, PTT and SMH will hold share 44.5% in GC, and OR extended a contract with CP ALL or 7-Eleven to operate within the petrol stations by another 10 years. This will take us through to 2023.
OR and BAFS jointly were selected to operate aviation fuel service at U-Tapao Airport. The initial investment fund is THB 2.3 billion. This is expected to be COD within this month. Thirdly, IRPC approved the Ultra Clean Fuel project or UCF in response to Thailand's policy to commercialize Euro 5. The investment money is THB 13 billion COD by 2024. Thai Oil bought shares in PT Chandra Asri which is an integrated petrochemical company in Indonesia to the tune of THB 39 billion. I am sure analysts are aware of this. Chandra Asri has a capacity of 4.2 million tons. This is the diversification of Thai Oil into petrochemicals on top of the refinery business. The green part of the doughnut, Future Energy and Beyond.
First, PTT approved Innobic, in which PTT holds 100%, to buy shares of Lotus Pharmaceutical Company, 6.6%, $50 million in order for PTT to expand into this business. It will enable us to learn this new business venture, which will be taken forward in the future. Secondly, Innobic Asia established a joint venture with Nove Foods, 50/50 with registered capital of $300 million in order to operate plant-based protein. The manufacturing plant will use high-tech capacity in Thailand with the production capacity of 3,000 tons per year to be COD'd by the fourth quarter of next year. This is the consumption trend. This is something different from traditional vegetarian food. Plant-based meat is raw material that can be turned into hamburger and a number of other Thai dishes. That is the new trend, new venture for us.
Next, PTT signed an MOU with Foxconn for a feasibility study of EV platform for Thailand. Clarity shall emerge this year whether we are entering into a joint venture together, but things are looking good. The finalization shall come forth soon. As soon as there's any conclusion, we shall duly inform you. The term platform. Why we use the term electric vehicle platform? The principle is that this technology doesn't have to manufacture an entire vehicle, but it's going to serve as a platform, a base. It's the chassis. It is going to produce the chassis, but it is an electronic chassis. Battery and the control circuits are laid out, therefore this factory is suitable to serve as platform for various brands that have not yet developed EV tech yet. They can use this as a manufacturing base.
They can co-design the body together so it can manufacture EV for multiple brands. We can deem this a disruption technology for EV production. From the initial study, we reckon that we can shorten the R&D period by two years and reducing cost by roughly 20%. If successful, we will proceed with joint venture, and the investment shall be destined to Thailand. Fourthly, we established a company called EVme Plus, which is a subsidiary of ARUN PLUS, which is a company that we set up to invest in the whole value chain of electric vehicle. EVme is the application to serve as platform to create an EV ecosystem. When you are not confident about going EV or not, go into this platform. There are plenty of choices for you.
You can lease for about seven days, one month, or three months for trial run until you are confident. This platform is expanded to cover various fleets that wish to add electric vehicles onto the fleet. This is a new application launched recently. We are in the soft launch phase. The actual launch will be end of this year. We will keep you posted. Fifth, PTT EP, jointly with Aerodyne from Malaysia and Digital Creation established a company called AeroSky to offer drone solution services in Thailand. Main clients are those in the telecoms, electricity, oil and gas, for exploration and maintenance of their assets. GC has bought all ordinary shares of Allnex Holding, EUR 4 billion. Allnex is into coating resin and additives. Currently, Allnex has the capacity of 1.2 million tons. This is the venture into high-value business by GC.
GRSC, which is the subsidiary of GPSC, invested in Avaada Energy Private Limited in India by buying shares equivalent to 41.6%, THB 14 billion investment. This investment deals with solar power plant in India.
It has the committed capacity totaling 4.5 GW. Next, GPSC bought shares of Changfang and Xidao in the proportion of 25% worth $500 million. The share transfer is expected within the second quarter next year, and this company operates offshore wind energy in Taiwan with combined generation capacity of 595 MW. And in the future energy area, also NatureWorks is doing the second polylactic acid or PLA using sugar cane molasses as raw materials to produce PLA. The capacity is 75,000 tons per year. The investment value is $600 million. And to continue-
If you listen to the PSA, you've heard about the activities during the pandemic. For nearly two years, we've been living with the pandemic. PTT is not sitting idle. We have been very active since the first wave. Early last year, we lacked alcohol and face masks. PTT supported hospitals nationwide. We specifically supported 200 state hospitals and 5,000 local hospitals with more than 1 million liters of alcohol and various medical devices and equipment back then. If you recall, also the last quarter of last year , when Thailand was looking good, zero infection, we were talking about economic stimulation. We launched a campaign called Restart Thailand Job Creation. Across our group, we recruited both routine staff to operate ongoing projects as well as recruiting fresh graduates to work in projects where we are collecting data for CSR. All together we recruited about 25,000 people.
By the third wave, the situation is very serious. Therefore, we launched a project called Giving Breath Project. The video clip shown ahead of the briefing showed one of the sub-projects. The start of the project, we supported ventilators to hospitals nationwide. We donated 400 ventilators along with funding liquid oxygen and donating medical equipment devices. The latest project, the video clip also showed yet one more activity under this project. We set up the end-to-end screening unit and field hospitals with the intention to, well, we could do one loop in that we have a screening unit at the EnCo Terminal or the former crew center of Thai Airways. Originally, we wanted to do office for lease.
More than half clients expressed interest, now we put that on hold to turn that facility into a screening unit with the capacity of handling up to 2,000 individuals per day. We set up a home isolation care system. We distributed equipment for people in home isolation. We have Favipiravir medicine for all who were tested positive and requiring home isolation. For those who are beyond home isolation, we put them in the field hospital, the 1,000 bed, for yellow cases and red cases, critical cases, we have 120 beds. We address the whole chain. The objectives, we have to work with the government, we have to work with the public health authorities, we have medical sector partners as well. We want to create a model for other big conglomerates. If this kind of chains can be implemented in key locations.
It will help ease the public health burden on the government sector. That's what I wish to share, that apart from doing our business, we care for the community and the society to our full capacity. I would like to end my part here. I'm sorry, I still have key business drivers to go through. May I mention about the key drivers for the first half year? I think you know this very well because you monitor almost on daily basis the oil price as well as petrochemical increase in Q2 compared with Q1 or both Q1 and Q2 and half-on-half basis. Mainly, we all know that demand has picked up. Many countries around the world have eased their lockdown, except Thailand, of course. Thailand has just started imposing lockdown. For crude and fuel oil, they are positive due to OPEC+ tight alliance.
They monitor closely, they cut production stringently, and when situation improved, they increased, but they increased with prudence and gradually. They agreed. Everybody is still complying with what's been agreed upon. As a result, prices have been stable, not fallen. Petrochemical, higher on the back of improving demands in light of economic activities. Inventories in China remain low, even though new capacity keeps coming in to pressure the market. Natural gas, QoQ increased 8% from all sources in line with the increasing oil price. Half-on-half, down by 13%. In line with the benchmark oil prices, still lower than last year. FX, you know well that Baht has become weaker. Next, performance. I would like to invite Khun Phannalin.
Thank you very much, the CEO. For the operation result for Q2 compared to Q1, I would like to just present the QoQ performance. You can see the overall picture in terms of revenue. You can see that PTT Group's revenue increased by 12% as a result of the price of petrochemical and oil and as well as the sales volumes, which are increased. This is because the situation of COVID in several countries are better. In terms of EBITDA, you can see that our group EBITDA increased by 10% and mainly from the production and exploration businesses, whereas the performance of other groups are relatively the same as last quarter. In terms of net profit, it is down by 25% compared to Q1. In a normal operation result situation, it is okay.
In Q1, there's a non-recurrent item and PTT EP realized the profit from Oman Block 61, whereas in Q2, GC also recorded the depreciation in Oman. As a result, because of these non-recurring items, therefore, Q2 net profit decreased compared to Q1. If you see the pie chart here, you can see that performance from upstream, midstream, and downstream is quite in a balanced ratio. In the future, we hope that we will be able to increase the proportion of new energy and new business in our group's performance. If you look at the first half year performance compared to first half year of last year, you can see that it is better, much better. Revenue increased by 23% thanks to the price as well as sales volumes, which are increased in several businesses.
EBITDA, meanwhile, also increased more than 100%. Mainly coming from the refinery business, of which the performance is outstanding. The first half-year stock gain is more than THB half billion. As a result, the performance of the refinery business is much better. While the petrochemical business, all the products are increased, sales volumes are increased. The same happens in the aromatic business. That is why the EBITDA in this group is higher. In the gas business, the main business is coming from the PSC. The sales price is increased as well as the sales volume. Cost of gas is also down. The production and exploration business, its EBITDA is also increased as a result of sales increase. Thanks to the Oman field, the Bongkot field because of increasing sales volumes. At the same time, Field H in Malaysia also start its production in February.
Sales volumes also increased. The net profit also increased as a result of the increase of EBITDA. As I have already told you this year, the E&P recognized profit from the sales of Oman operation and the negative factor is the impairment of GC as well as the loss from the currency depreciation. The loss is around THB 6.8 billion. The depreciation is around. This is a result of the depreciation of the Thai baht. At the same time, there was also a loss from derivative totaling around THB 25 billion of PTTEP and PTT Trading. At the same time, there was tax expenses of around THB 23 billion. GC also record profit from the sales.
Starting from the E&P business, the Qo Q sales increased from sales price from THB 40.3-THB 42.9, mainly because of the increase of the liquid price, and at the same time, sales price of gas remains stable. Average sales increased by 16%. This is mainly because of the Oman project and Malaysia Field H. The net profit, however, it is down by 47%, although EBITDA is increased. This is mainly because in Q1, profit was recognized in the non-recurring items, and at the same time, there is an increase of tax expense of $129 million. This is because of the increasing operation result. In terms of depreciation cost, it increased by THB 82 million.
In terms of the first six months' operation result, the net profit increased by 46% and mainly as a result of sale price, which increased by 3% and sale volume, which increased by 20%. In terms of net profit, this is not only a result of the sale price which increased. The unit cost also went down as a result of the Oman and Malaysia operation of which the cost is lower. I have already told you from the tax incomes as well as the increase of the depreciation and as a result, we have net profit increased by 46%. In terms of the PTT EBITDA breakdown by business. Starting from the gas business, Q2 as compared to Q1, you can see that EBITDA slightly increased by 1%. By 2%. Mainly is because of the gas EBITDA.
S&M EBITDA was down by 22%, and S&M is the trading business. It was down by 22%, and this was mainly because in Q1 we record profit from the LNG export, and as a result, we recorded in Q1. However, this profit we need to return it to the state. That's why we return it to the state at the end of Q2. That's why we have to book it as an expense. We have to readjust the cost of sale in Q2, and as a result, it seems that EBITDA in S&M in Q2 was down compared to Q1. In terms of cost of gas was also down to THB 6.3, and from all sources from JCC and the price of fuel oil. Sales volume increased by 3%.
This was mainly a result of the customers from the power sector. The sales volume increased by 5% as a result of the increased demand of electricity, especially from the household sector. At the same time, there were emergency shutdown for maintenance of four coal-fired power plants, and that's why the increase for gas is also increased. At the same time. For the average sales for industrial customer increased in line with the increased price of fuel oil. In terms of TM or the pipeline business, you can see that the EBITDA increased by 6%, and this was mainly because of the increase of sales resulting from IPP. There was a new IPP in Q2. There was no extra expense because in Q1, we had expenses to pay to Department of Rural Highways. However, in this quarter, there was no such extra expense.
At the same time, cost of sales also increased in line with the increase in the price of gas. GSP EBITDA up. In Q2, mainly because of the average price up. Volume, sales volume also up by 1%. Thanks to LPG in high demand of petrochemical sector. Prices are higher, but LPG price is down and therefore, petrochemical plants that can use flexible feed turn more to LPG. Feed cost increase on the back of rising gas prices from the Gulf. In NGV business, the loss is more by 92%. Mainly due to gross profits down on the back of less income. More than less cost, we adjusted the NGV price. There's a lag time of 45 days, when gas price increase, it would result in squeezed margins and decreasing sales volume. Could not stretch to cover the fixed cost, resulting in NGV in red.
For others, mainly PTT LNG and PTT NGV EBITDA stabilizing. For trading, EBITDA down by 20% compared to the previous quarter because of 20% downward adjustment. THB 9 /L in Q1. THB 0.09 /L due to less spread of LNG, LPG, and fuel oil, which fared very well in Q1. In Q2, the spread became tight. Condensate discounts also down. Condensate discount helped improve the margin slightly. Sales volume down by 6% due to falling demand of refineries as the pandemic accelerated in Q2. Those are PTT's results of PTT's own business. Now let's take a look at Oil Business or OR Group. Q o Q, net income down by 19%. We look at it separately. Oil Business.
Average selling price is higher in line with global oil price, but sales volume is down by 6%. Mainly gasoline and diesel that decrease both in the retail and commercial sectors as the pandemic became more severe. Net profit also down because of gasoline, as we shore up the price to reduce the burden on consumers during the Songkran holiday. For non-Oil Business, actually the performance has improved even though sales revenue decreased. Mainly because of sales volume of Amazon from 73 million to 7 million cups on the back of shrinking consumer purchasing power. Other non-oil revenues increased. Gross margin and EBITDA slightly higher due to optimal cost management effort. Half-year results. Net income of OR is higher than 100% from THB 2 billion-THB 7 billion.
The Oil Business average sales price is higher on the back of global oil price, but sales volume is down by 5%. Specifically in the aviation fuel as travel is restricted. Profit per liter also increased, resulting from retail and commercial clients whose margin of gasoline and diesel are higher. For non-Oil Business, sales volume is higher. For Amazon business, sales volume increased from 128 - 143 due to expansion of branches by 368 branches. Gross margin EBITDA higher on the back of higher incomes and cost management. Those are the performances of OR. For P&R, starting from olefins. Performance has improved, both increasing product price on the back of higher demand and global recovery and Chinese inventories are in the low level and hence increasing purchasing power. Product spread also improved on the back of higher demand, especially PE plastic pellets.
Sales volume is slightly down on GC's part because of the impact of lightning. Capacity went downwards slightly. Aromatics performance improved significantly. Benzene spread and PX spread higher. Benzene spreads higher by 64%, reflecting the crude price, while supply is down due to shutdown maintenance and reduction of capacity amongst various plants in Asia and temporary pause of production in the U.S. due to snowstorms. PX spread higher than 13% for textile and PET resin. There are still pressures from the upcoming capacity from China in Q3. Let's take a look at refinery. Utilization rate of refineries group remain constant at 96%. Market GRM is down from $1.9 - $1.6 per barrel in Q2 because of rising premiums, even though spread increased. If we look at the stock gain, which impacts P&R's performance in Q2.
Stock gain is down by THB 3 billion from gain in Q1 at about THB 10 billion - THB 8.7 billion in line with Dubai crude. The adjustment of Q2 is less than Q1, resulting in net income of P&R higher from THB 18 billion - THB 22 billion in Q2 on the back of improved product price and spread. Half-on-half performance has improved significantly. Performance is good. Product prices have picked up and sales volume also rose steadily because half-year last year there's a big shutdown maintenance for olefins and polymers. Aromatics performance improved. Both benzene and PX spread. Benzene spread increased significantly on the back of crude price and as well as higher demand and tight supply. PX spread also improving on the back of demand for downstream products in the textile and garment. Refinery utilization rate of the group decreased from 99% - 96%.
In the first half this year, market GRM up from $1.10-$1.7 per barrel in the first half, mainly due to spread of benzene and crude, which increased. Stock gain, I mentioned earlier, increased by about THB 50 billion, resulting in net income of the group higher significantly from loss last year at THB 27 billion to profit of THB 50 billion in the first half of this year. For GPSC or electricity business, Q o Q, it is positive whether it's about sales volume, which also increased
The sales volume increased by 6%, the steam increased by 2%. This is mainly because SPP sales volumes overall increased as a result of sales to EGAT and industrial users. Sales volumes of IPP slightly down because of the Sriracha power plant. Gross profit increased by 3% from THB 5.3 billion -THB 5.4 billion. This is mainly because of the growing IPP. Whereas margin SPP is down because of the higher cost of gas and because of the higher cost of maintenance cost. Net profit in Q2 increased by 17% from THB 1.9 billion -THB 2.3 billion. This is in line with the increase of the gross profit as well as the increased dividend and increased share profit thanks to the Xayaburi Power Plant. Then there are also other incomes, mainly as a result of the recognition of the insurance compensation from the power plant.
However, there is increase of expense of around THB 179 million. For first half operation result, net profit increased by 23%. This is mainly because of the increase of the average sale price. Electricity price increased by 1%, steam price increased by 2%. Overall sales volumes increased thanks to the increased sales of industrial users. This is mainly from SPP where sales volume of IPP is a bit down. Gross profit slightly down by 2%, and this is mainly because of the margin IPP, which is down as a result of the suspension of power plants for maintenance purpose. At the same time, the net profit, as I have already told you, increased by 20%. Also, thanks to the share of profit from the Xayaburi Power Plant and thanks to the increased volumes of water compared to last year.
At the same time, we also recognize compensation from insurance of the Glow Phase 5 Power Plant. Now we are moving to the consolidated financial statements compared to on a QoQ basis. You can see that it seems that net income seems to be down by 25%. However, the operating net income actually increased by 20%. Positive factors are margins. You can see that margins are positive factors as it accounts for THB 15 billion from gas from E&P and P&R businesses, whereas trading and oil, the margins are down. Stock gains also down by THB 3.7 billion as a result of the slightly decline of the increase of oil price. OpEx also increased by THB 13 billion, and this is a result of the increase of petroleum royalty.
Depreciation cost and amortization also increased by THB 1.5 billion. This is mainly because of the depreciation cost of production and exploration. Other incomes is a negative factor of around THB 6 billion. This is net with the Brazil project of E&P. Impairment also increased by THB 3 billion. This is because of the recognition of GC of Emery Oleochemicals. FX and derivative is also negative by THB 1.7 billion. If we look into detail, you can see that derivative is higher by THB 500 million. However, FX is also down by THB 1.4 billion because of the Thai baht depreciation. Interest and corporate income tax expenses is negative by THB 3.4 billion. CIT expenses is higher by THB 9 billion because of the GPSC sales profit. The E&P's operation is also increased.
The interest expense also increased by THB 200 million. Net income [Non-English content ].
This is the waterfall presentation. Now, the balance sheet, you can see that the total assets of the PTT Group increased by 11%. And this is mainly because cash and short-term investment, which is up by THB 20 billion. AR and other current assets also increased by about THB 100 billion. And this is a result of the higher oil price. When the oil price is higher, AR is also higher. Non-current asset is up by THB 48 billion. This is a result of the asset following the purchase of Oman project. And the PPE also increased as a result of the acquisition of the Oman projects. And the projects of high oil. In terms of liabilities, you can see that AP and other liabilities increased by THB 70 billion. And this is a result of the increase of oil price. Interest-bearing debt increased by THB 79 billion as a result of the higher loans.
In terms of equities, it increased by 130 billion as a result of the net profit in the first quarter of around THB 57 billion as well as the non-interest equity, which is a result of the capital increase of OR. In terms of financial ratio, you can see that net debt to EBITDA is down from 1.6-1.23. And this is because of the increase in the long-term loan, which is lower than the debt. And the net debt equity is also remains relatively stable. In terms of the cash flow statement, at the beginning of the period, we have cash on hand of around THB 330 billion. And cash flow received from the operating of around THB 150 billion. The free cash flow, however, is down by THB 88 billion because we have investment activities. And mainly as a result of the PTTEP's acquisition of Oman.
Financing we receive of around THB 50,000 million as a result of the issuance of the IPO of OR and new loans. As a result, during the first half of the year, we have cash out of around THB 40,000 million. Combined with the beginning of the period, we have cash around THB 291,000 million. At the end of the period, we have cash of around THB 438,000 million.
May I continue with the outlook. Starting with the global economic outlook, which everybody is monitoring closely. IMF projected global economic growth at 6% and adjust the GDP growth of U.S. and Eurozone to 7% and 4.6%. At the same time, adjusting downward growth of countries such as China at 8.1% from 8.4%. Japan 2.8%. India 9.5% from +12%. Now it's revised downward due to the outbreaks. Thailand likewise. Projection adjusted downward to 2.1%. Positive factors. Economic activities are likely to gradually pick up or increase. The fiscal stimulus packages of industrialized countries will have impact on recovery. In order to stimulate economic recovery, negative factors include the delayed vaccine rollout in many countries. In many countries, there are vaccine deniers, especially in the U.S. They constitute quite a sizable group of population. The outbreaks of new variants we have to watch closely.
The pent-up demand. Bottlenecks of value chains as well as weakening currency will drive inflation in many countries. It may lead to early plucking off of stimulus packages. Measures. Let's take a look at Thailand. Various institutions have come up with projection of the state of the Thai economy, that this year it will expand between 0.5%-2%. The latest, the National Economic and Social Development Council has revised it downward to between 0.7%, and I reckon that next round, we can anticipate another downward adjustment. For Thailand, the main engine of the economy is export, which is recovering on the back of global demand, especially auto parts, electronics, machineries, and agricultural products. In fact, during the latter half, petrochemical products, energy fuels that PTT exports have improved significantly, and the improved price factor. These are contributors to the economy.
Still, we have to watch out for negative factors. The very high infection rates and delayed vaccine rollout, the lockdowns in major cities, and the plan to open up the country to welcome tourists in the latter half of the year. We have to closely monitor. A lot of challenges remain. The Phuket Sandbox hasn't proceeded as planned. Petroleum and gas outlook. This year we project that all petroleum products price will increase. Can you please bring up the slide? I think we are trying to synchronize the slide presentation. The petroleum product outlook for 2021 higher across the board due to increasing demands on the back of global economic recovery. In any case, we have to closely monitor new variants. OPEC+, they are complying, but they still crank up the production volume.
Between now to end of the year, the production is about 2 million barrels per day. We have to watch whether demand can match with the cranked-up supply or not. We have to monitor Iran, which may increase production and Iran itself right now. We have to keep an eye on the new round of nuclear negotiations. In terms of numbers, Dubai averaging at $63-$68 per barrel compared with $22 per barrel last year. For oil price spread, Singapore GRM in 2021, we anticipate it to be $2-$2.5 compared with $0.4. That's quite a remarkable improvement. Gas price, Asian spot LNG, we reckon it will be in the range of $12-$13.8 million compared with $4.3 per million BTU due to higher gas demand in China in response to recovery.
European countries also pay closer attention to carbon emission and coal. Coal use is being reduced and gas is replacing that. That's a trend for petroleum product. For petrochemical, olefins, aromatics. This year, prices are up across the board compared with last year because of economic recovery. In any case, there will still be pressure from COVID-19 outbreaks and supply is likely to increase due to capacity coming into the pipeline in the latter half and the return of U.S. export to Asia following the polar storm. HDPE up 28% year-on-year, well from last year at $180 per ton. We reckon it will be up to $1,500 PP, up 28% from $963 -$1,200 per ton. Benzene up quite significantly, 83% from $400 to the tune of $800 or $900. PX up 48% from $577 to $830 to $880 per ton this year.
Let's take a look at the guidance for PTT Group. For the latter half of the year, we look forward to performance recovery gas business. Gas demand is expected to increase by roughly 1% from industry and power generation on the back of recovering Thai economy. We have to keep an eye on it very closely. This is improvement compared to last year, whether growth is sustained or not, we have to wait and see. Gas demand growth projection is at about 3.1% compound annual growth rate. The sales volume in petrochemical higher on the back of increased capacity of Gas Separation Plant. Utilization rate higher from 87% to the range of 92%-94% average. Gas price will stabilize as oil price improved; it will be averaging retroactively; it doesn't peak that much.
For PTT Group's business for E&P, oil price is recovering and sales volume of E&P higher by 16% due to acquisition of new assets. Costs have become more competitive for E&P. Previously $30.5 per barrel, now is down to $28-$29 per barrel thanks to the acquisition of the Oman 61 Block . Oil Business OR, it will be impacted by the COVID-19 outbreaks and lockdown measures of various provinces. Consumers' purchasing power shrinks. In any case, OR itself has plans to expand and strengthen its network consistently, with the plan to expand the network from 192 in Thailand and overseas. It will add on EV charging stations to complete 100% target by end of the year. Non-oil Amazon still expanding continuously. This year, 552 branches. In country, 400. Overseas, 132. Refinery is expected to recover.
I already mentioned GRM to 2.5% yield rate is projected at 95%-97%, close to last year's figures. For petchem, for the latter half, again, we have to watch closely on the pandemic outbreak situation. In any case, the overall picture of 2021 is higher. Spread trend is higher. The production capacity, both aromatics and olefins higher on the back of increasing demand. These products are exported as well, and demands are rising. Power generation business, GPSC power demand. Power and steam demand from industry plants in Map Ta Phut up by 4.5% compared to 2020. Projects to be COD-ed towards end of the year. The fifth gas pipeline divided into three phases. First phase, it's due in Q3. Phase II, Q1 next year. Third phase, December next year. The Ratchaburi-Wang Noi Gas Pipeline construction completed. We are testing the system. COD expected in September this year.
For OR, they established a central bakery and beverage mixing in order to enhance quality control and optimize efficiency of the business. It will start to roll out in September this year. A high-quality plastic recycling project of GC. The production capacity is 45,000 tons per year. COD Q4 this year. For IRPC
Joint venture with Innobic, the wholly owned subsidiary of PTT to manufacture nonwoven fabric. Innopolymed, that's the name of the venture. For use in face masks. We call it face mask, they just assemble. They have to import the raw materials. This factory, for the first time, will manufacture in Thailand to supply raw materials for face masks to substitute import. Production capacity 2,100 tons per year. COD end of this year. That's good news for you. GPSC Avaada, the solar power plant. I refer to total committed capacity of 4,500 MW. For GPSC portion, it is 1,900 MW. They have already COD 1,500 and under construction about 3,000 MW. COD will be gradual next year and the year after that. Already committed. Shutdown maintenance plan as shown on screen. Our routine work. Next. Today, I would like to talk more about the vision of PTT Group.
We have a new vision earlier this year, and I would like to share our new vision to you today. On this page, you can see that we have evolved starting from 1978 when we first established. At that time, we were tasked to oversee the shortage of national energy. We evolved, and in 1984, we tried to upgrade ourselves from the state-owned enterprise into a conglomerate. In 1997 to 2001, that was the period of our IPO. Following the IPO, we went into M&A and tried to resolve the economy, and we got funds. In 2005, we adjust our vision and try to strengthen ourselves in the international market. At that time, we set our vision to become a Thai premier multinational energy company. This mission which we have been implemented up to earlier this year.
We have already achieved it as a Thai premier energy company. Yes, we are Thailand's leading energy company, and we also are leading multinational energy company because we are one of the companies in the 100 DJSI. That's why we feel that we have already achieved our vision, and that's why it's time that we revamped our vision. This attempt has been going on for a while, and this is a result of the disruption of what is going on in the world's energy situation as well as what is going on socially. Because of these factors we feel the need to readjust our vision. As you can see now in the next slide, that is our vision. Our new vision is Powering Life with Future Energy and Beyond. If you look at this vision, there are two parts.
Powering Life is our organization's purpose, meaning that this is the purpose. This is the raison d'être of our organization. Powering Life represents our drive. Powering. Life has a wide meaning which refers to life of an organization, of the country, and of the world. Powering Life means that we intend to drive everyone to make sure that everyone can live happily. With Future Energy and Beyond, which is the second portion. This represents our strategy. How can we take care of the society? We will take care of the society through future energy. Fossil fuel energy alone may not enough. Beyond means that we further envision businesses outside the energy sector. When I said beyond, we mean mainly from the country's S-curve.
Coming back to the vision, Powering Life with Future Energy and Beyond, this is going to also increase or add to the creation of the country's S-curve. All in all, this is our vision. Now I wish to go into detail. For powering life, we intended to have the sustainable growth. We will invest through partnerships and platforms. PTT, to be able to grow in the future, we may not be able to grow alone. We have to do it with our partners, and we are big enough to become a platform for startup companies or SME so that we can grow together. The second one is we intended to have a positive contribution to enhance livelihood to the society. This will be done through our business and our CSR activities. Finally, the third one is the low-carbon society.
This means that we will conduct our business that respond to social and environmental needs. Now for the portion of Future Energy and Beyond, you can see that there are two colors in this slide. Future Energy is in blue and Beyond is in yellow. Of course, Future Energy will focus on Future Energy businesses and as well as new businesses. For Future Energy, we will focus on the renewable energy storage and EV value chains. Right now, we are conducting a feasibility study on hydrogen. For Beyond portion, there are five to six business that we will underline. The first one is the life science business. In a while, I will go into details. Of the six businesses, Beyond Business, they are life science, which includes pharmaceutical businesses. Mobilities lifestyle is the second. High-value business is the third.
Next is logistics and infrastructure, AI, robotics, digitalization, finally, new business that we are ready to explore. You can see that these six platforms will help increase the platform in order to realize the country's S-curve. Next slide, please. I will just try to take you to the future direction. Currently, we are very familiar with the upstream and downstream, we will increase the future energy. For the upstream energy, when we talked about future energy, of course, we are talking about renewable energy. From now up to 10-20 years, this is the transition period. This is not going to turn everything from one thing to the other overnight. Because it is the transition period, the best transition field right now is natural gas.
Of course, we will continue to be in this business, and we will expand the investment in this business. Of course, in the upstream business, we will accelerate the LNG value chain. We will continue to expand our LNG portfolio, and we will focus on the LNG portfolio where if we acquire a business, it will mainly an acquisition of gas fields as well as the medium goal is the portfolio will be around 3 - 4 million tons and to 9 million tons in 2030. For the downstream business, we use the word powering downstream along with future energy. This means we will adjust ourselves in the existing business in order to comply with the trend of the world.
For the downstream business, we will reduce our exposure in the refinery business, and we will increase the proportion in the new business. In addition, we will focus on energy through Project ONE within the group. We will also upgrade our management in the access of the internal or domestic production from the refinery business. We will introduce optimization tools in order to manage the access. We intended to become a player so that we will have a bargaining power in the region. This is about the downstream that we envision. Of course, in this downstream business, we will continue to expand in the petrochemical businesses, especially in the specialized branch of business. For future energy, as I said before, the focus will be on the RE, renewable energy. A company called ARUN PLUS is established in order to invest in the entire value chain.
We will also focus on the energy storage system. GPSC pilot plant is already starting, using the semisolid technology, and now the market is being studied. There is a possibility to expand further. The next slide is talking about the beyond energy that I mentioned earlier that we have in place six businesses. For life science, there will be three main business, whether it's about pharmaceutical business, about the nutrition business. A while ago, I talked about a joint venture to produce plant-based meat. For pharmaceutical business, we acquired a stake in Lotus in Taiwan in order to study or to acquire the know-how. Actually, it is quite useful because just recently, the medicine which is required for COVID-19 treatment, actually, at that time, the favipiravir, we had only 4,000 bottles of that medicine.
Thanks to this company, we were able to import an additional 2,000 and then donate it to the government. Next month, we plan to import another 4,000 bottles. This is like an extension or expansion into the pharmaceutical business. If you ask us about where the know-how is coming from, in our group, there are people who graduate in pharmaceutical and chemical businesses, and so these people are very competent in their knowledge. In addition, the way that we expand our business from our expertise, for example, in the nonwoven fabric plant, this is also an extended investment, which is coming from what we produce in our petrochemical business. In terms of HVB, high-value business, GC is the main leader by acquiring 100% in Allnex. In terms of AI robotics, we are currently studying the feasibility.
We have established a company and we do not sell only cloud storage, but also solutions. We have collaborated with Microsoft in order to acquire the know-how in relation to cloud. PTT EP also established a subsidiary to oversee AI robotics and drone. For the infrastructure business, the target is to enter this business as a third-party logistics partner. We will manage the warehouse, rail, and terminal, as well as value-added services in packing and assembly.
The operation has partially started. For example, PTT Tank has collaborated with its partner and get concession at Sriracha. No, at Laem Chabang Phase 3 Terminal, and this has already been approved, as well as in Map Ta Phut Phase 3. One area that we focus is the rail business. Finally, the mobility and lifestyle. OR will be a leader in this business. OR is not only just sells gas or gasoline, but we try to set up our position in the mobility business. This slide shows actions and activities during the brief period after the revision of our vision, future energy. GPSC acquired 41.6% shares in Indian solar power developer Avaada. 25% share of offshore wind farms in Taiwan. 90% shares in solar power plant. That's a rooftop project or EV value chain. We signed MOU with Foxconn.
Whether to enter into the JV or not, please stay tuned. We will know soon. The establishment of ARUN PLUS subsidiary. Swap & Go. Swap batteries for motorbikes. For new business, I already explained. Buying shares in Taiwanese pharmaceutical company, Lotus Pharmaceutical, plant-based protein. Actually, a number of collaborations with the R&D center in order to upscale the production of favipiravir. Actually, what we have right now is the pellet maker, not manufacturing the actual pharmaceutical properties. That project is to bring about pharmaceutical supply and also oncology drug. It is progressing well. The collaboration to produce herbal medicine with Siriraj Hospital to commercialize. High-value business. I mentioned mobility and lifestyle. I touched upon, so you will see a range of novel activities by OR. For example, buying shares in Flash or joint venturing with Ohkajhu.
These can be added on OR's own chains, especially the network of petrol station during the pandemic. The fuel sale, the oil sale itself has decreased, but non-oil, food, fortunately, they are not subject to shutdown orders. Food outlets in petrol station, even though people cannot dine in, they can order takeout. These are examples of activities we have implemented following the unveiling of the revised vision a few months ago. In terms of investment direction and long-term goal, we have completed strategic thinking sessions, and we have come up with the big picture. The macro direction of the future that I would like to share with you today. We set the target of new growth, i.e., net income from future energy and beyond undertaking at the tune of more than 30% net profit share by 2030.
Businesses, for example, LNG, we set the target of 9 million tons in our portfolio. Power generation, if you remember, we revised figures to be more ambitious. For example, power from conventional sources, same as before, at 8 GW. Renewables, we revised upward from 8- 12 GW. Big deals have already happened, as you can see. Clean growth. We set the target of reducing greenhouse gas emissions by 15% from the base year of 2020. Whether we achieve net zero target. As we speak, we are conducting intensive revision in order to set PTT's emission targets. We heard the terms net zero, carbon neutrality. We are scrutinizing these and very soon we will announce something. Of course, it has to be compatible with the national strategy. Thailand itself is examining these targets.
In terms of CapEx, the percentage of CapEx, we will invest in new business and future energy, roughly to the tune of 32%. Strategic direction by business. For you to see the picture, E&P expand growth for high growth and focusing on gas. For gas, build global LNG portfolio. P&R supply chain integration, the synergy and moving up to high-value chain. More specialization. We start a petrochemical for refineries, which is actually supposed to be in Indonesia. The plant is still lacking in terms of capacity. There are rooms for growth in Indonesia. Of course, we will build upon the existing network, which has strength in solvents, oil, and retail. I mentioned already, focusing on customer-oriented businesses and power business, generating growth domestically and regionally. New energy. As I said, we focus on renewable energy storage system and EV value chain. New business.
We are on the verge of scaling up following feasibility study and close scrutiny for a while. I'm not sure whether I can say or not, within this year, we should be able to announce some deals to this effect. That's the direction now. Well, originally, my staff had prepared slides to talk about clean and green strategic execution, I requested that as we are in the process of reviewing, we need to incorporate updates and changes. Please hold, allow us to crystallize and come up with something more solid. We will share with our analysts and fund managers friends