PTTGC in $2bn Map Ta Phut project

Partner sought for downstream process

SET-listed PTT Global Chemical Plc (PTTGC) is conducting a feasibility study to add feedstock to naphtha and expand downstream production in a US$2-billion project in Map Ta Phut over the next five years.

The project, called Map Ta Phut Retrofit, will convert the surplus naphtha from its oil refinery to be cracked into olefins and compound products, said Supattanapong Punmeechaow, chief executive of Thailand’s largest petrochemical maker.

This part of the project will cost $1 billion.

The entire project is part of a $4.5-billion capital expenditure for the next five years including an olefin cracker in Ohio.

PTTGC has a substantial naphtha surplus from its oil refinery, totalling 1.4 million tonnes each year, 80% of which is sold to Siam Cement Plc and the rest exported.

If the company adds the naphtha surplus to feedstock, its annual olefins production will increase by 30% to 1.3 million tonnes.

For the downstream project to add feedstock to naphtha, the company is mulling the possibility of developing production facilities for polypropylene, acrylic acid, styrene monomer, superabsorbent polymers, acrylonitrile butadiene styrene and polystyrene compounds. Most downstream production is for auto parts, building materials and electronic parts.

The feasibility study will be completed by year-end, after which the company will look for a partner to form a joint venture for its downstream production in Map Ta Phut.

The other $1 billion for the project will go towards developing a polyurethane chain for isocyanates and polyols, both of which are feedstocks for foam, coating materials, adhesives and building materials.

Most new downstream production will add speciality polymers to some of its products to counter tough competition among commodity-grade polymer producers.

Patipan Sukorndhaman, executive vice-president overseeing the upstream business, said the olefins cracker production facility in Ohio would be finalised by mid-2016. PTTGC has formed an initial partnership with Tokyo-based Marubeni Corporation for the facility, which will cost an estimated at $5.7 billion.

The company achieved third-quarter revenue of 93.6 billion baht, down by 34% year-on-year, for a net profit of 1.2 billion, down by 84%.

PTTGC shares closed yesterday on the SET at 56.75 baht, down 75 satang, in trade worth 864 million baht.