PTTGC sets a 5-year investment budget of B150bn for the EEC, including petrochemical plants and infrastructure
Five-year investment to include petrochemical plants, basic infrastructure
PTT Global Chemical Plc (PTTGC), Thailand’s largest petrochemicals producer, has set a capital investment budget of 150 billion baht for the Eastern Economic Corridor (EEC) during 2018-22.
This budget accounts for half of PTT group’s overall budget of 300 billion baht for EEC locations under the five-year business plan.
PTT has invested more than 2 trillion baht over the last three decades, since gas production first began in the Gulf of Thailand.
PTTGC board chairman Prasert Bunsumpun said the 150-billion-baht investment goes to several projects from upstream to downstream, including petrochemical production facilities and basic infrastructure.
“The budget is set to add value and expand capacity for PTTGC’s existing assets, which involve oil and gas from production rigs in the Gulf of Thailand and fuel dispensing at petrol stations,” he said.
Moreover, PTTGC recently acquired a plot of 900 rai (144 hectares) at Asia Industrial Estate in Map Ta Phut, worth 7.2 billion baht. The transaction was completed through the wholly owned subsidiary GC Estate Co.
Yesterday, PTTGC started construction on the first three projects at a total investment cost of US$1.89 billion (59 billion baht) in Rayong’s Map Ta Phut.
The three projects mark the first investment assets of PTTGC in EEC locations since the National Legislative Assembly passed EEC bills in early February. Enforcement of the act is expected around mid-2018.
PTTGC chief executive Supattanapong Punmeechaow said all three projects are set to contribute to higher profitability.
The upstream project is worth $985 million for an olefin cracker (ethylene) and propylene plant with a capacity of 880,000 tonnes a year.
The two downstream projects together are worth $900 million and will produce propylene oxide (PO), polyols and polyurethane at a capacity of 200,000, 130,000 and 20,000 tonnes a year, respectively.
The products from the three projects will be feedstock for many industrial sectors, such as auto parts, building materials, electrical units and electronic parts, for which prices are up to 25 times higher than commodity-grade plastic.
The operations of the three projects are expected to begin around the second half of 2020.
Mr Supattanapong said PTTGC has signed memorandums of understanding (MoUs) with an additional five companies for joint ventures in several projects valued at over 100 billion baht.
The projects are expected to begin operations over the next five years in EEC locations.
For instance, PTTGC signed an MoU with Sumitomo and Kuraray for a polyamide 9T (super engineering plastic) project last year.
Another project is a specialty surfactant production plant with Nippon Shokubai and Mitsui & Co. The products will include raw materials for home care, scouring agents and metal cleaners.
PTTGC will invest in a specialty polypropylene production plant with a Dutch chemical firm, LyondellBasell, to make products for film packages, medical equipment, auto parts and consumer goods.
The basic infrastructure investment will include PO and polyols tank development under a joint venture with Dutch liquid logistics provider Vopak NV, worth $20 million.
PTTGC also plans to expand the logistics system with a capacity of 5 million tonnes a year for propane imports and petroleum storage.
PTTGC shares closed yesterday on the Stock Exchange of Thailand at 98.50 baht, up 50 satang, in trade worth 1.4 billion baht.