2003/3/11 Financial Times
Extra high density polyethylene and ethylene capacities in Thailand.
In Thailand, a new 250,000 tonnes/y production plant for high density polyethylene (HDPE) is being built by National Petrochemical. The new plant is to use Mitsui technology, and is to be supplied with ethylene from the group's vapour cracker, the capacity of which is to be increased to 460,000 tonnes/y from 2005. In 2005-2006 National Petrochemical is to decide whether to build another vapour cracker.
（Ｃｈｅｍｎｅｔ Ｔｏｋｙｏ 2001/9/7）
Thailand's NPC engages Samsung to build PE plant by 2004
Thailand's National Petrochemical Co has signed an agreement with Samsung Engineering for the construction of a 250,000 mt/yr polyethylene plant at Map Ta Phut to be completed in 2004, president Viroj Mavichak said Tuesday in a statement to the Stock Exchange of Thailand. The high density PE plant would cost $68-mil and would be NPC's first polymer production facility. When on stream, the plant would transform NPC into a backward integrated producer of PE and ethylene. NPC had initially considered using Borealis' process technology for the PE plant, but eventually decided on Mitsui technology. This was because many Thai converters were more familiar with the Mitsui brand. At least two other Thai HDPE producers, Bangkok Polyethylene and Thai Polyethylene, also use Mitsui's technology.
NPC's new HDPE plant is to use ethylene feedstock from the company's existing ethylene plant. NPC has a gas-based 400,000 mt/yr ethylene plant at Map Ta Phut. NPC does not intend to expand the cracker's capacity, but would instead reduce its ethylene exports when the PE plant comes on stream. The cracker also has the capacity to produce 27,000 mt/yr of propylene as a by-product. In addition, NPC has a propane dehydrogenation unit which is able to yield 100,000 mt/yr of propylene. The company sells all its propylene output, the bulk of which is supplied to local polypropylene producers HMC Polymer and Thai Polypropylene.
化学工業日報 2000/10/13 不成立 → 再交渉
タイＮＰＣ ＢＰＥ（バンコク銀／三井物産合弁）買収 オレフィン垂直統合へ
2004/3/2 Bangkok Post
Bank seeks to sell its non-core businesses
PTT Plc and its subsidiary Thai Olefins Plc (TOC) are negotiating to take over Bangkok Polyethylene Co (BPE) from Bangkok Bank and the Sophonpanich family.
An executive of PTT, who asked not to be named, said buy-out negotiations for a controlling interest in the producer of high-density polyethylene (HDPE) had not yet been finalised, but added that Bangkok Bank and the family, which holds a 40.23% stake in BPE, needed to sell off the petrochemical asset in order to concentrate their focus on banking sector concerns.
''There has been no conclusive decision yet regarding which entity will become the buyer, be it PTT or TOC or a joint venture,'' said the executive.
PTT and TOC are interested in buying BPE because HDPE is a downstream market for TOC's ethylene production.
BPE is currently a major buyer of ethylene from TOC.
This is not the first time that the petrochemical group under PTT has proposed to take over BPE. In 2000, National Petrochemical Plc (NPC), another PTT subsidiary, had entered talks to buy all of Bangkok Bank and the Sophonpanich family's holdings in BPE. But the deal collapsed after the parties failed to agree on a price.
The executive said that if the new bid is successful, TOC would not need to build a new HDPE plant and could send its expanded output of ethylene, a major feedstock for HDPE production, to BPE instead of slating it for export.
Bangkok Bank has long sought an exit from the petrochemical business as its unit cost is relatively higher than other competitors.
BPE has a capacity of 200,000 tonnes per year while other players each have capacities of between 250,000-300,000 tonnes, resulting in higher production costs for BPE due to its inferior economy of scale.
Bangkok Bank would need to inject a huge amount of cash into the firm if it wanted to expand production and reduce its unit cost to be on par with its competitors, he said.
Apart from Bangkok Bank, other shareholders include Mitsui Corp, with 35%; Singapore's Transpac, 13.53%; Hua Kee Group, 7.21%; and retail shareholders who hold 4.03%. BPE has registered capital of 1.7 billion baht. The plant is located in Rayong.
HDPE prices have soared this year. On Southeast Asian markets, it hit US$900 last month, up from $833 in January, a continuation of the commodity's steady climb from $723 a tonne last December.
The fate of HMC Polymers Co, another of Bangkok Bank's petrochemical businesses, has not yet been decided.
PTT shares closed yesterday at 159 baht, down two baht, in trade worth 1.06 billion baht. TOC shares closed at 61.50, down four baht, in trade valued at 417.95 million baht.
中国・ＡＳＥＡＮニュース速報 2004/2/26 タイ紙
中国・ＡＳＥＡＮニュース速報 2004/2/26 タイ紙
Business Day 2004/2/25
NPC to double capacity as demand rises 他の報道
Plc (NPC), one of the country's largest petrochemical companies,
said yesterday it will spend up to $400 million to double
existing capacity in anticipation of increased demand from China.
“Demand from China is strong and has helped push petrochemical prices higher,” company president Viroj Mavichak said yesterday.
Although he declined to give details on where the funds for the investment will come from, the company's major shareholders, including PTT Plc (38 percent) and Siam Cement Plc (about 25 percent), have expressed their support for the company's efforts to expand operations.
Virok said NPC will increase its annual ethylene production capacity by 400,000 tonnes, and expand into downstream products, like low density polyethylene and linear low density polyethylene
Once the ethylene production expansion project is completed, NPC's annual capacity is expected to surge to around one million tonnes, he said. The project is estimated to be completed by 2006.
Viroj also said that his company expects profits this year to grow by 20 percent as demand for petrochemical products continues to rise, specifically for petrochemical by-products in China.
Analysts said NPC's plan to expand production was a good, adding its completion might come just before the petrochemical cycle finishes.
“I think all this expansion will be completed by 2007, TISCO Securities analyst Chaipat Thanawattano said.
He views this move by NPC as timely, with higher volumes likely to help offset falling margins after 2007.
“The higher volumes will help the company maintain profitability, while lowering costs too,” he added.
As part of efforts to help NPC increase production volume, PTT said yesterday that it too was looking to invest $170 million to boost ethane production capacity by around 500,000 tonnes.
Meanwhile, PTT and NPC signed an MoU yesterday to ensure the production and supply of 390,000-500,000 tonnes of ethane annually.
NPC uses ethane primarily to produce ethylene and other related products.
Under the MoU, both parties will conduct a feasibility study, which experts estimate will take around four months, on their production expansion project, Viroj said.
PTT will also study the possibility of jointly investing in NPC's plan to expand the production of ethylene and related products, PTT vice president Chitrapongse Kwangsuksith said.
Another subsidiary of PTT, The Aromatics (Thailand) Plc (ATC), announced yesterday that it too was looking to invest $200 million in another downstream project.
NPC's shareholders have already approved plans to produce 200,000 tonnes of phenol annually together with 125,000 tonnes of acetone.
The new venture will be a joint investment wherein PTT will would hold 40 percent, ATC 20 percent, NPC 20 percent and PTT subsidiary Thai Olefins Plc the remaining 20 percent.
ATC said that its investment will not exceed $20 million.
In a statement to the Stock Exchange of Thailand, ATC noted that the benefits from the project are expected to reach 18 percent in terms of internal rate of return and that its investment will be will be recouped within five years.
It also said that the commercial operation date will be sometime within the second quarter of 2007, and that the project will add to the value to the company’s benzene product.NPC shares closed yesterday about 2.5 percent down at 117 baht.
April 14, 2004 Thai
Press Reports 他の報道
NPC to spend $600m for 3 projects
National Petrochemical Plc (NPC), one of the country's largest petrochemical companies, said over the weekend that it plans to spend up to $600 million for the construction of three new plants, a move that would enable it to go head-to-head with Siam Cement Plc. which is also planning to expand capacity.
NPC said the investments would be made during the course of the year, adding the final decision will only be made once the rate of return on investments are determined. It has set a bottomline figure of higher than 14 percent.
Siam Cement, the country's largest conglomerate, recently revealed a plan to build a gas-based cracker plant, an investment that could reach as much as $1.2 billion.
NPC president Viroj Mavichak, pictured right, said the three projects include a 600,000-tonne-a-year natural gas-fuelled ethylene cracker plant and two polyethylene production plants, with each having an annual production capacity of 300,000 tonnes.
He added that NPC is contemplating whether to produce low-density polyethylene pellets, linear low-density polyethylene or high-density polyethylene.
Siam Cement is NPC's second largest shareholder, holding approximately 25 percent, next to PTT Plc, the country's largest oil company, which controls about 38 percent of NPC.
Viroj said PTT has signed an MoU to supply natural gas to NPC's projects. At the same time, PTT has expressed its intention to invest in NPC projects, although the actual investment ratio has not yet been determined, he added.
He also said feasibility studies on the projects will be completed by the second quarter of the year.
He added that construction of the plants should be completed within two to three years.
He said NPC wants to build pellet and ethylene cracker production plants simultaneously in order to absorb ethylene produced from the cracker plant and increase its value.
However, Viroj noted that there might be a surplus soon in the product since several petrochemical manufacturers also plan to increase their production. But he added this will not be a big problem as additional quantities of petrochemical products can be exported to China where the demand has been increasing every year.
He said PTT also wants NPC to be a co-investor in its project to produce propane, a raw material used in the production of polypropylene.
Viroj said NPC's investment capital will come from profits of 1.1 billion baht posted last year.
He added that NPC plans to raise more funds from bank loans or bond issuances. The company plans to borrow 2.4 billion baht in new funds this year and about 5 billion baht next year.
Petrochemicals remain the core business of PTT and expansion in the industry will certainly help boost the company's income, he said.
He said NPC's current investments include a $7 million olefin production capacity expansion project, which will increase ethylene production to 461,000 tonnes annually from 437,000 tonnes, and a 250,000-tonne-a-year plastic pellet plant project expected to be completed in 2006.
Along with PTT, NPC also plans to invest in a 1.7-billion baht central utilities project that will supply 35mw of electricity to PTT affiliates, he said, adding NPC will also co-invest in a $200 million cumene/phenol project. Cumene and phenol are raw materials used in the auto parts industry.
He said the two plants will be completed in 2007. NPC will hold a 20 percent stake each in both, while PTT will hold 40 percent. Thai Olefins Plc and Aromatics (Thailand) Plc each will hold a 20 percent stake.
Petrochemical News 19
JULY 2004 (Vol. 42, No. 29)
Thailand's National Petrochemical Eyes Ethylene, PE Plan with PTT
Plc (NPC) of Thailand is seeking board of director approval for a
joint venture with Thailand's PTT to produce ethylene and
As proposed, the two would establish an equally-owned venture to build a 400,000-t/y ethylene cracker and a 300,000-t/y PE plant in Rayong.
The project, expected to cost about $400-million and come on stream in 2008, would use gas from PTT's fifth gas separation plant.
NPC, which is 38% owned by PTT, had decided to build a new ethylene plant because it believes the petrochemical industry will experience an upward trend from next year on, explained Supon Tubtimcharoon, senior executive vice president of NPC.
Earlier this year, NPC said it was conducting feasibility studies for a new 600,000-t/y ethylene plant and two 300,000-t/y PE units.
29 Apr 2005 PTT
PTT’s Acquisition of 31.5% Ownership
Interest in TPI
On April 29, 2005, PTT
Public Company Limited (PTT) and the Ministry of Finance (MOF),
in its capacity of an agent authorized by the Thai Petrochemical
Industry Public Company Limited (TPI) Business Reorganization
Plan (Plan) to select and allocate TPI shares to new qualified
investors, have reached an agreement on the indicative price and
major terms of the Share Purchase Agreement (SPA) under which PTT will acquire
31.5% ownership interest in TPI (diluted to 30% ownership post the
issuance of ESOP shares). PTT intends to subscribe to
approximately 6,143 million shares of TPI at an indicative price
of THB3.30 per share, equivalent to approximately THB20.3 billion
(approximately US$520 million) for the entire 31.5% ownership
interest. The transaction and the indicative THB3.30 per share
offer are subject to satisfactory confirmatory due diligence and
the terms and conditions of the SPA to be agreed upon.
PTT expects to finalize the terms and conditions of SPA by May 30, followed by the execution of SPA with other investors, TPI and the selling shareholders in June 2005. Both PTT and MOF are committed to meeting all key milestones and consummating the transaction in a timely and efficient manner. The payment for TPI shares will take place after the successful completion of the Plan, but no later than November 4, 2005 in accordance with the timeline set out in the Plan. Upon a successful closing of the transaction, PTT, together with the Government Pension Fund and Government Saving Bank, will own over 50% of TPI.
In its assessment of the proposed investment, PTT has conducted detailed due diligence on TPI’s existing operations, business plan and projected financials to ensure that the investment satisfies its 15% rate of return threshold and other internal investment guidelines. Khun Prasert Bunsumpun, President of PTT, emphasizes that “through this investment, PTT intends to leverage TPI’s existing business platform and further expand itself into a fully integrated petrochemical business. It is PTT’s objective to strengthen TPI’s existing operations through upgrading production facilities, maximizing operational efficiency and enhancing value of under-utilized assets. PTT aims to achieve potential synergies in, among other areas, the procurement of crude and feedstock, and marketing and trading of refined oil and petrochemical products. As the largest shareholder of TPI and given its strategic position in the petroleum and petrochemical businesses, PTT will assume management responsibility of TPI to ensure a smooth and efficient operational transition, improve TPI’s competitive position, maintain high corporate governance standards and increase shareholder value.”
To evaluate this investment opportunity, PTT has retained Phatra Securities Public Company Limited and Citigroup Global Markets Asia Limited as domestic and international financial advisors respectively, Linklaters (Thailand) Limited as legal counsel, KBC Advanced Technology Pte Ltd as technical consultant, and Deloitte Touche Tohmatsu as independent auditor.
PTT Polyethylene Company Ltd. Selects UNIPOL(TM) PE; New Facilities Will Include Metallocene Technology
Technologies today announced that PTT
Polyethylene Company Ltd. (PTTPE), a joint venture between
Thailand's PTT Public Company Ltd. (PTT) and National
Petrochemical Public Company Ltd. (NPC), has selected the UNIPOL PE
Process from Univation Technologies for its polyethylene plant. The
new facility is planned as part of a major petrochemical
expansion at its Mab Ta Phut site in Rayong, Thailand. The plant
will include a UNIPOL PE line capable of producing 400,000
tons of linear low density polyethylene per year. The facility will also be
the first new build plant in Southeast Asia to include
Univation's well-proven metallocene catalyst technology.
PTTPE reported that proven reliability and world scale capacity were the primary reasons, together with the advantages in investment and operating costs, for the selection of Univation's PE technology. Additionally, the ability to accommodate Thailand's growing PE demand with proven LLDPE products as well as the ability to produce PE products made with metallocene technology were cited.
"We are extremely pleased to be selected by PTTPE to meet their need for LLDPE capacity in Thailand with a world class UNIPOL PE facility. The proven reliability and efficiency of the UNIPOL PE process coupled with advanced metallocene technology will offer PTTPE the scale and flexibility to meet their near term and future market demands," said Ken Glover, Univation's president.
Univation Technologies is a joint venture between The Dow Chemical Company and ExxonMobil Chemical Company, and is the world leader in licensing gas phase polyethylene technology. Univation has comprehensive technology programs focused on the UNIPOL polyethylene gas-phase process, and is committed to delivering value to the polyethylene industry.
ExxonMobil Announces LDPE Licensing Agreement in Thailand
ExxonMobil Chemical Technology Licensing LLC announced today that it has signed a licensing agreement with Thailand's PTT Chemical Public Company Limited, (PTTChem), for production of low-density polyethylene (LDPE) and ethylene vinyl acetate (EVA) in a 100 KTA autoclave system. PTTChem, an affiliate of PTT Group and the largest producer of ethylene and propylene monomer in Thailand, also produces HDPE and supports their downstream petrochemical plants with a variety of utilities and logistics facilities.
"We selected ExxonMobil's autoclave technology because of its proven performance in plants around the world, its cleanliness, safety and excellent conversions," said Suphon Tubtimcharoon, PTTChem's senior executive vice president marketing and commercial. "This technology offers us a cost-effective way to meet demand for LDPE/EVA in this region."
Neil Chapman, vice president, Global Polyethylene Business, ExxonMobil Chemical Company, said, "PTTChem is a growing producer in a rapidly growing market. We are pleased to have been selected as its licensor in this latest production expansion."
The flexibility of the ExxonMobil LDPE technology will enable PTTChem to produce an extensive grade slate. The products produced by the ExxonMobil technology can be used in a variety of applications, including film packaging, injection-molded articles, insulation materials, pipe and tubing.
ExxonMobil Chemical Technology Licensing LLC is a globally recognized licensor of proprietary technologies, either directly or through arrangements with other licensing companies. The technology offerings span petrochemical and polymer sectors including manufacturing technologies for tubular / autoclave LDPE, polypropylene, xylene, paraxylene, benzene, mixed xylenes, ethylbenzene, cumene, propylene and ethylene with supporting proprietary catalyst offering in the aromatics process technology areas. For additional information see the ExxonMobil Chemical web site at www.ExxonMobilChemical.com and click on the "Technology" menu.
ExxonMobil Chemical is a global leader in technology, product quality and customer service with petrochemical manufacturing and/or marketing operations in more than 150 countries around the world. Its products include olefins, aromatics, fluids, synthetic rubber, polyethylene, polypropylene, oriented polypropylene packaging films, plasticizers, synthetic lubricant basestocks and additives for fuels and lubricants.
Thai PTT secures $208 million in loans for phenol investment
The Petroleum Authority of Thailand (PTT) has secured loans for $208 million which it plans to use towards a phenol joint venture project which is slated for completion in early 2008, the company said Friday in a statement to the Thai bourse.
The loans comprise long-term and working capital facilities for $158 million and $50 million respectively, for a period of 13 years.
The phenol JV, PTT Phenol Co, would be capable of producing 200,000 mt/year of phenol and 125,000 mt/year of acetone by-product in Map Ta Phut, from propylene and benzene supplied by PTT's petrochemical affiliates.
The JV is a tie up among PTT, Aromatics (Thailand) Public Co (ATC), PTT Chemical Public Co (PTTCH) in the proportion of 40%, 30% and 30% respectively. The project's total investment cost is approximately $283.4 million.
Bangkok Post 2006/9/18
good for PTT
Two firms offer downstream entry
PTT Chemical Plc will acquire majority stakes in PTT Polyethylene Co (PTTPE) and Bangkok Polyethylene Plc (BPE) at a discount of 910 million baht from the companies' value, according to an independent financial adviser for the transaction. PTT Chemical announced earlier that it would acquire 11.5 million shares, or 50%, of PTTPE and 85 million shares, or 50%, in BPE in a deal with PTT Plc, its major shareholder with a 50.1% stake.
The transaction would result in PTT Chemical holding all of the shares in both companies.
PTT Chemical was formed through the merger of PTT affiliates Thai Olefins and National Petrochemical, and began trading on the Stock Exchange of Thailand last December.
Ayudhya Securities Plc, the independent financial adviser on the transaction, said it considered three different valuation methods for the BPE and PTTPE shares: a book value approach, market-comparable approach, and discounted cashflow approach.
It considered the first two methods not appropriate in evaluating the transaction price. The book value approach does not take into account intangible assets, for example gas supply agreements since they do not have a book value. Since PTTPE has not started operations, there are no revenue and profits to compare so the market-comparable approach cannot be applied.
The most appropriate method was discounted cashflow (DCF), the adviser said in a report to the Stock Exchange of Thailand.
Based on the DCF method, the combined value of the acquired companies is 4.66 billion baht: 2.452 billion baht for BPE and 2.208 billion baht for PTTPE. Given the transaction value of 3.75 billion baht, it represents a discount of 910 million baht from the companies' value.
Ayudhya Securities said that after the transaction, an investment worth US$1.3 million would follow in the PTTPE production plant.
Consequently, fund-raising from existing shareholders would be required to begin construction of the PTTPE plant.
The investment in PTTPE marks the entry of PTT Chemical into downstream businesses, specifically production of low-density polyethylene and linear low-density polyethylene.
On the marketing side, an agreement between PTT and PTT Chemical stated that BPE is required to sell its 25% holding in PTT Polymer Marketing Co (PTTPM), the group's petrochemical marketing arm, to PTT, which could have an impact on PTT Chemical's marketing ability.
PTT currently holds 50% of PTTPM while PTT Chemical and BPE hold 25% each. Although BPE will no longer hold a stake in PTTPM after the transaction, the change in the shareholding structure does not significantly affect the control of PTT Chemical in PTTPM, the adviser said.
Overall, the adviser said, the transactions would increase the competitiveness of PTT Chemical to maximise benefits to the company and its shareholders in the long term.
Shares of PTT Chemical (PTTCH) closed yesterday on the SET at 77 baht, unchanged, in trade worth 231.2 million baht.
Thai Aromatics Thailand, Rayong Refinery to merge by January 2008
Thailand's state-owned PTT Public Co hopes to finalize a merger of its subsidiaries Aromatics Thailand Public Co (ATC) and Rayong Refinery Public Co by January 2008, a PTT spokesman said Monday.
The boards of the three companies agreed to the merger on Friday. PTT's board has agreed to buy back ATC and RRC shares from shareholders who objected to the move, the spokesman said.
PTT now has a 49.67% stake in ATC and 48.75% share in RRC. PTT aims to have a 49.5% share in the merged company but its stake may be larger, depending on the number of shares it needs to buy back from shareholders not in favor of the merger, the source said.
The merged company will have a registered capital equal to Baht 29.93 billion, RRC executive vice president Nitima Thepvanangkul said Monday in a statement to the Stock Exchange of Thailand. Rayong operates a 145,000 b/d refinery at Map Ta Phut, which supplies reformate to ATC's aromatics complex at the same industrial estate.
Rayong and ATC jointly have a condensate residue splitter, reforming complex and aromatics complex under construction at Map Ta Phut, due for completion August-September 2008. The splitter will convert condensate residue into refined petroleum products. The reforming complex will use condensate to produce reformate, which will in turn be used as feedstock for the new aromatics complex.
Early Monday, ATC and RRC's shares were pegged around Baht 70 and Baht 23.70 on the Stock Exchange of Thailand, rising 4.48% and 6.28% respectively from the previous trading day.
Thai Bangkok Polyethylene to double HDPE capacity by Q4 2009
Thailand's PTT Chemical
plans to double the high density polyethylene capacity of
subsidiary Bangkok Polyethylene to 500,000
through a debottlenecking project, by the fourth quarter of 2009,
a company source said Friday.
PTTCH expects to finalize the project's engineering contract in October or November, and start construction works in December, at Map Ta Phut.
Bangkok Polyethylene's HDPE expansion is slated to be completed at the same time as PTTCH's new ethane cracker, which will supply the additional ethylene feedstock its sister company will need.
The ethane cracker will be operated by PTT Polyethylene, another PTTCH subsidiary. It will have the capacity to produce 1 million mt/year of ethylene. Of this, 700,000 mt/year will be consumed by PTT Polyethylene's two PE plants and nearly all the remaining ethylene output channeled to Bangkok Polyethylene.
Bangkok Polyethylene's existing 250,000 mt/year HDPE plant buys ethylene from PTTCH's "I41" naphtha cracker, previously owned by Thai Olefins and formerly code named TOC No 1.
Japan's Toyo Engineering is building PTT Polyethylene's ethane cracker and PE plants. Bangkok Polyethylene's expansion project is expected to cost $170 million.
Thai PTT Chem shelves EVA plant in favor of HDPE debottlenecking
Thailand's PTT Chemical
has shelved an ethylene vinyl acetate investment planned for
completion in 2009 in favor of a polyethylene capacity expansion,
a company source said.
The EVA project was put on hold indefinitely due to a $54 million or 37% surge in its cost to over $200 million. The cost increase would have diminished the investment's anticipated internal rate of return, making it a less attractive expenditure, the source said The company requires its chemicals projects to have an IRR rate of at least 15%.
The EVA plant's cost estimate was set at $146 million two years ago. Since then, prices of plant equipment, building materials such as steel and iron, and the engineering contractor's fee have risen significantly.
Three engineering and building contractors initially participated in the project's bidding process, but two eventually withdrew, saying they had committed to other projects in Asia, especially in China and Southeast Asia.
If PTTCH had not pulled the plug on the EVA project, construction would have began by December 31, 2007, on a 100,000 mt/year plant at Map Ta Phut in Rayong province. When on line, the EVA plant was supposed to draw ethylene feedstock from a 1 million mt/year ethane-based ethylene plant which is currently under construction at Map Ta Phut. The ethane cracker is slated to come on stream in the fourth quarter of 2009 and will be operated by PTT Polyethylene, another PTTCH subsidiary.
BANGKOK POLYETHYLENE'S HDPE CAPACITY TO BE DOUBLED
PTTCH's latest polyethylene project would involve doubling the high density polyethylene capacity of its wholly owned subsidiary Bangkok Polyethylene to 500,000 mt/year at Map Ta Phut through a debottlenecking project. It is also targeted for completion in Q4 2009.
Bangkok Polyethylene's new HDPE production capacity will source ethylene from PTT Polyethylene's ethane cracker. Bangkok Polyethylene's existing 250,000 mt/year HDPE plant buys ethylene from PTTCH's "I41" naphtha cracker, previously owned by Thai Olefins and formerly codenamed TOC No 1.
Bangkok Polyethylene's HDPE expansion project is expected to cost $170 million. The contractor's bidding process is already completed and PTTCH expects to award the contract in October or November, with construction works expected to start around December.
Japan's Toyo Engineering is building PTT Polyethylene's ethane cracker and two associated PE plants.