phillipines-n

BATANGAS PETROCHEMICAL SITE, PHILIPPINES 　
　　　　　　　　　　　　　　　　　　　　　　　　　　http://www.chemicals-technology.com/projects/batangas/

JG Summit's Batangas petrochemical site was built to partially satisfy the Phillipines's consumption of polyethylene and polypropylene, for which there was no production until 1998. The island's petrochemical sector is now convinced that the government recognises its vital role in the country's economy and is seeking the introduction of safeguard duties in order to protect the sector from dumping. It is also requesting lower interest rates, a reduction in the cost of power and an acceleration of infrastructure construction.

Import tariffs on polyethylene and polypropylene were raised to 15% in July 1998. Those on PVC and polystyrene were increased to 15% in January 1999. Tariffs were not reduced before 2002, when they are required to be reduced to 0-5% under the AFTA agreement.

CRACKER DEVELOPMENT
Discussions on the construction of the country's first cracker naphtha plant have been restarted between PNOC-Petrochemical Development Corp (PPDC) and the private sector. Previous disagreements did lead to a breakdown in these talks. Three private petrochemical consortia have been planning independent cracker projects. Finance is expected to be confirmed in the first quarter of 2002, and the first cracker should be in operation no later then 2006. In November 2001 a second plant was announced by PNOC which will double investment. The second plant should start construction two years after the first plant begins commercial production, and will be partly financed from the proceeds.
　　　　　　* PNOC : GOVERNMENT-controlled Philippine National Oil Company
At Bataan, a 600,000t/yr cracker is being planned by PPDC and a 450,000-600,000t/yr facility is being planned by Bataan Olefins and Polymer Co (BOPC). A 350,000t/yr cracker project is being planned in Batangas by JG Summit. Petrocorp, which is a lead partner in BOPC, operates a polypropylene facility with a capacity of 160,000t/yr in the PPDC petrochemical park in Bataan.

Two other consortia under discussion are considering a joint venture to reduce individual cost and risk. The Petrocorp-led consortium is looking at a $600 million naphtha cracker. They are working with BP, Sunitomo and Mitsubishi Corp, and contractors include Kellogg Brown & Root for construction. The other consortium is led by the Chinese Petroleum Corp. (CPC), who are considering a $600 million naphtha plant with an estimated production of 600,000t/yr of ethylene and 310,000t/yr of propylene. PPDC and the Itochu Corp will provide financing.

Only when the cracker is built will Mabuhay Vinyl Corp and Philippine Resins Industries be able to proceed with plans to back integrate into vinyl chloride and ethylene dichloride production. Chinese Petroleum Corp (CPC) and other potential investors in the PPDC project have been discouraged by the government's refusal to grant a 5% increase in polymer import tariffs to 20%, that would have increased the returns on their investment. Lawsuits have already been filed against South Korea and Thailand by Petrocorp and JG Summit for alleged dumping of polymers, causing material injury to the domestic industry. Shell has announced its intention to build a 500km pipeline from Batangas to Malamapaya/ Camago.

POLYETHYLENE AND POLPROPYLENE PRODUCTION
Before the site was completed, the Philippines had to rely entirely on imports for its 500,000t/yr consumption of polyethylene and polypropylene. The complex was sponsored by JG Summit Petrochemical (JGSP), a joint venture between JG Summit Holdings (80%) and Marubeni (20%). Utilising the most modern equipment and the latest processing technology, the company will offer A-1 grade processed petrochemical materials with durability and adaptability to a wide range of fabrication, coloration and design. Inaugurated in April 1998, JGS's plant produces 175,000t/yr of LLDPE and HDPE and 180,000t/yr of polypropylene. Since that time sales of the products have rocketed, especially polypropylene which rose 60% after production began.

JGSP's $350 million plant complex, located in a 25 hectare area in Simlong, Batangas, beside Batangas Bay, is equipped with manufacturing technology provided by Union Carbide, now Dow of the USA. An industrial water facility was installed to treat water used in the production and utility facilities prior to discharge from the plant site.

ETHYLENE PLANTS
The Philippines has no ethylene plants upstream and relies on imports for all supplies of the raw material. JG Summit intends to rectify this situation by bringing onstream a 350,000t/yr ethylene plant but the government is still in discussions with the financiers. It also has plans to expand its LDPE capacity by 100,000t/yr. The rival company Bataan Polyethylene, in partnership with BP, Sumitomo and others, completed a 250,000t/yr L-LDPE/HDPE facility in early 2000.

PLatts　2002/5/27　　　　

Philippine PNOC to conclude naphtha cracker study by July

State-owned Philippine National Oil Co expects to complete a feasibility study for its proposed $600-mil naphtha cracker project in Bataan, north of Manila, by Jul 1, a company official said Monday. "We expect to release the findings of our study on Jul 1. We will then distribute the results to interested investors and open up the bidding process to those interested," he said. PNOC has since last year been holding talks with Malaysia's Petronas and the Brunei government over taking up a proposed stake in the cracker. But the comapany has so far not been able to close any specific agreements. PNOC, through PNOC-Petrochemical Development Co, is expected to take a 30-40% stake, while Petronas is said to remain keen in taking up at least 20%, and Brunei is eyeing a 35% stake.
Meanwhile, the naphtha cracker project would likely be funded through a combination of debt and equity, the PNOC official said. "Several investment banks have showed their interest in underwriting the project or becoming financial advisors," he said. "We will most likely select our financial advisor after our study has concluded," he added. The naphtha cracker plant will the capacity to produce 600,000-700,000 mt/yr of ethylene, and is targeted to be fully operational by 2004 or 2005. The cracker would support downstream polypropylene and polyethylene plants.

石化会社と能力

JG Summit Petrochemical (JGSP)
　　a joint venture between JG Summit Holdings (80%) and Marubeni (20%)

LLDPE and HDPE 　　175,000t/yr
Polypropylene　　　　　180,000t/yr

Bataan Polyethylene
　　partnership with BP(38%), PETRONAS and Sumitomo Corporation

L-LDPE/HDPE　　　　 250,000t/yr

Philippine Resin Industries
　　東ソー　50%、　三菱商事　50%

PVC　　160,000t/yr

Philippine Vinyl Co.　　
　　台湾華僑

PVC　20,000t/yr

JG SUMMIT PETROCHEMICAL CORPORATION　http://www.jgsummit.com.ph/html/jg_petro.html

JG Summit Petrochemical Corporation is 80% owned by JG Summit Holdings, Inc., with the remaining 20% held by Marubeni Corporation of Japan. Upon its inauguration on April 6, 1998, the JGS Petrochemicals plant became the country's first integrated polypropylene and polyethylene complex. JGSPC's product lines include linear low-density polyethylene (LLDPE) film and injections, high-density polyethylene (PP) yarn, film and projection grades. The Company makes these previously imported materials available at local prices. Domestic manufacture of these raw materials for use in the plastics industry not only creates more jobs and saves dollars, but also provides an accessible source for one of the necessary building blocks of newly industrialized countries.

JG Summit Petrochemical Corporation (JGSPC) posted revenues of P3.47 billion for its first full year of operation. The Company generated sales of P496.7 million during its first two months of operations in fiscal year 1998. Sales of JGSPC's linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE) increased by 9%, while local sales of Evalene polypropylene (PP) rose by a high 60%, as compared to their respective 1998 annualized sales.

With a production capacity of 180,000 metric tons of polypropylene and 175,000 metric tons of polyethylene annually, the Company aims to supply the majority of manufacturers of plastic-based products in the country. Utilizing the most modern equipment and the latest processing technology, JGSPC will offer A-1 grade processed petrochemical materials with durability and adaptability to a wide range of fabrication, coloration and design.

The LLDPE film grade continues to dominate the domestic film market. The blow and injection molding grades of HDPE continue to do well, with significant growth projected in the injection grade. Due to the Company's aggressive marketing to the key end-users, the PP yarn and film grades gained wide acceptance among local end-users.

Key strategic initiatives for the year 2000 are geared towards increasing plant operating rates via enhanced market shares in HDPE, LLDPE and PP, rapid commercialization of new products in the pipeline, and significant expansion of the Company's end-user customer base. As an adjunct to these efforts, a concerted program of achieving productivity gains will be vigorously pursued in the areas of logistics and operations, where significant potential savings have been identified.

The business of JG Summit started in 1957 when Universal Corn Products, Inc. (now Universal Robina Corporation) was established to operate a corn starchplant in Manila. Since then, JG Summit has pioneered breakthroughs, broadened its enterprise and stayed at the forefront in every phase of the country's rise to development - the entrepreneur, who invested in agribusiness and the manufacture of feeds and prime food commodities; the visionary, who channeled resources and expanded into financial services, textile and property, all backbones of a growing economy; the captain of industry, who invested in power, telecommunications, petrochemicals, cement, and air transportation, all requisites for industrialization; the innovator, who continually provides value and fun in snacking; and the new regional multinational, who has embraced the challenge of global competitiveness with zeal.

JG Summit has seven (7) core businesses: branded consumer, agro-industrial and commodity food products in Universal Robina Corporation; real estate and hotels in Robinsons Land Corporation and United Industrial Corporation (Singapore); telecommunications and internet in Digital Telecommunications Phils., Inc.; textiles and garments in Litton Mills, Inc; petrochemicals in JG Summit Petrochemicals Corporation; air transportation in Cebu Pacific Air; and financial services in Robinsons Savings Bank and JG Summit Capital Services Corporation.

JG Summit's place in Philippine business has for its cornerstone a business portfolio of market leaders, a solid financial position, a formidable management team, and a vision of leading the country to global-competitiveness and making life better for every Filipino.

The Bataan Polyethylene Corporation　
　　　　　　　　　　　　　http://www.bpamocochemicals.com/where/sites/default.asp?siteid=93

The Bataan Polyethylene Corporation is located on the west side of Manila Bay in the PNOC Petrochemical Development Corporation’s complex in Mariveles, Bataan.

Shareholders in this joint venture include, Bataan Polyethylene Holdings, Inc.; BP.; Petroliam Nasional Berhad (PETRONAS) and Sumitomo Corporation with operations due to commence in the year 2000.

Together with the product lines of sister sites, the Bataan Polyethylene Corporation offers a diverse range of polyethylene grades that present customers a solution to their raw material needs. A comprehensive product range satisfies all major sectors of the market including blow moulding, injection, film and monofilament. Plant capacity is 2 x125Kt HDPE/LLDPE swing reactors. Similar operating sites in Malaysia and Indonesia are ready to provide supply continuity in case of shortages.

Supporting its technical service capabilities, the Bataan Polyethylene Corporation can access on the resources, skills and experience of its shareholder technical and research centres.

January 17, 2003 Financial Times

Planned naphtha cracker plant not viable, says plastics group

Downstream plastics industries have put the proposed naphtha cracker plant to its deathbed, saying the project is no longer viable.

The Philippine Plastics Industries Association (PPIA), an association of some 200 local plastics manufacturers, said yesterday the Philippines does not have a strong petrochemical industry that would support the naphtha cracker project. Thus, the group said it will not be joining the consortium that will be putting up the project.

A naphtha plant, which processes by-products of oil refineries, produce compounds like ethylene, propylene, butene and other compounds. These compounds are then processed by petrochemical plants to produce resins, the raw materials used for making plastics.

Alex Teng, PPIA vice-president, said for one, the country's upstream oil industry is very small with only three oil companies with refineries. The Philippines also faces tough competition from Middle East countries which are now able to use cheap natural gas for the naphtha cracker plant.

Another problem, Mr. Teng pointed out, is the proposed naphtha plant has only a capacity of only 600,000 metric tons (MT) for the compounds it will produce. This, he said, will not make the naphtha plant globally competitive.

"For it to be globally competitive, it needs to have an ethylene capacity of one million metric tons," Mr. Teng told reporters yesterday.

He also said there would only be one client of the proposed plant since other petrochemical plants have shut down. The Gokongwei-owned JG Summit Petrochemical, which is located in Batangas, is the last remaining petrochemical plant.

Ideally, a fully integrated petrochemical plant should be in one complex to make it easier to transport the compounds. Otherwise, transporting the resins would require specialized tubes and would entail higher costs.

On top of all these factors, the PPIA official also pointed out at present, the downstream plastics industry in the country does not have enough demand.

The present demand of the local industry is only at 400,000 MT a year while the downstream proposed capacity of the naphtha plant is 600,000 MT.

Proponents of the naphtha cracker project led by state-owned Philippine National Oil Co. (PNOC), however, are pushing through with the project. "There is no definite date for the project but it will still push through," a PNOC source said in a telephone interview.

Relatedly, the downstream plastics industry said it is supporting the government's decision through Executive Order (EO) 161 to reduce tariffs of petrochemical products to 10% from 15% while maintaining existing tariffs of plastic finished products at seven percent.

Raul T. Concepcion, convenor of the Alliance of Downstream Industries and End Product Manufacturers, said it was the best compromise possible.

"After much deliberation, this win-win compromise solution of reducing tariff distortion between plastic raw materials and finished goods will greatly benefit our local plastic manufacturers," Mr. Concepcion's group said in a statement.

EO 161 temporarily suspends the application of the zero to five percent tariff reduction scheme on petrochemical resins and certain plastic products under the Comprehensive Effective Preferential Tariffs scheme of the ASEAN Free Trade Area. Instead, the EO reduced tariff rates on petrochemical resins to 10% from 15% and maintained tariff rates on finished plastics products to seven percent.

PPIA's Mr. Teng and Mr. Concepcion in a joint press briefing said while there is still a distortion, this is already the best compromise possible for the petrochemical industry.

2004-2-20 Asia Chemical Weekly

Overseas investors interested in Philippine's Petrocorp

Philippine polypropylene (PP) producer Petrocorp is in talks with a number of European petrochemical producers on the sale of a 51% stake in the debt-strapped company, according to Petrocorp chairman Antonio Garcia.

However, Garcia added that the potential investors were awaiting the outcome of the upcoming presidential election in May before deciding on their next step. He said they had shown a lot of interest in Petrocorp, but they were concerned about the uncertainties surrounding the presidential election.

Garcia said the potential investors were also looking closely at Petrocorp's debt situation. ‘

"They have said they would be interested if we can get a substantial haircut on the debt and show that we can be profitable again," he said

The company last reported losses of Pesos 4bn ($71.3m/Euro55.4m) two years ago but has not issued balance sheet statements since. The chairman said everything was in limbo, so he did not even know whether the banks were charging interest on the company's debts.

Petrocorp is surviving solely on its tolling business, he said. The company is producing PP at its 160 000 tonne/year plant in Mariveles, Bataan, for three trading companies.

Garcia said the tolling arrangement provided just enough funds to cover staff costs and keep the plant going.

Garcia said Petrocorp had hoped that the Philippine National Oil Corp (PNOC) would be its strategic partner, but that had not happened. Another Philippine petrochemical producer, Bataan Polyethylene Corp (BPC), has already shut down because of debt and cash-flow problems.

PNOC was not immediately available for comment.

中国・ＡＳＥＡＮニュース速報　2004/4/5

プラスチック王、バターン石化施設掌握
http://www.e-plastics.gr.jp/japanese/nna_news/news/news0404_2/04040508.htm

　「プラスチック王」の異名を持つウイリアム・ガチャリアン氏が、操業停止中のバターン・ポリエチレン（ＢＰＣ）の掌握に乗り出しているようだ。同氏は、株式約30％を保有するメトロ・アライアンス・ホールディングス・アンド・エクイティーズを通じ、ＢＰＣの債券を買い取るものとみられる。

　ビジネスワールド紙によると、メトロ・アライアンスは今年２月、２億100万米ドル相当の債券を取得する計画をフィリピン証券取引所（ＰＳＥ）に報告した。内外の企業でコンソーシアムを組み、ＢＰＣの生産施設を復活させる方針も打ち出していた。

　同社が３月31日までに債券を買い取ったとの見方がある一方で、４月半ばまでＢＰＣの査定を継続するとの関係者情報も伝えられている。

　また、メトロ・アライアンスがどのような形態でＢＰＣを掌握するのかも分かっていない。抵当としてＢＰＣの生産施設を接収する方法に加え、債権の株式化を通じＢＰＣの株主になるという選択肢もあるようだ。

CHEMICAL WEEK NEWSWIRE Jun 08, 2004

BP, Petronas Find Buyer for Bataan Polyethylene
http://www.chemweek.com/news/2004/current/newswire06082004.html

Metro Alliance Holdings and Equities (Manila) is in final negotiations to buy the stakes of BP and Petronas in Bataan Polyethylene (BPE; Bataan, the Philippines), sources say. BP and Petronas each own 38% of BPE; Sumitomo Corp. has 6%; and the rest is held by local shareholders. Completion of the deal is expected by mid-year. Terms were not disclosed. BP and Petronas put their respective stakes up for sale about 18 months ago. BPE operates a 250,000-m.t./year BP-process polyethylene (PE) unit that has been mothballed for more than two years pending the company's restructuring. Metro Alliance plans to reopen the plant by year-end and purchase ethylene feedstock on the merchant market, sources say. BP recently announced plans to spin off its olefins and derivatives business. Metro Alliance says it makes a number of unspecified chemical products, and imports and distributes polypropylene in the Philippines.

ABS/CBS Interactive 2004/8/29

JG Summit revisiting naphtha cracker plans
http://www.abs-cbnnews.com/NewsStory.aspx?section=Business&OID=58398

JG Summit Petrochemical Corp., the petrochemical arm of the Gokongwei group, has revived plans to build the country’s first naphtha cracker facility, which would start commercial operations by the first half of 2008.

In a statement released over the weekend, JG Summit Petrochemical executive vice president and chief operating officer Wilfredo Paras said in the planned facility, which would manufacture raw materials for petrochemicals, would have a production capacity of 350,000 metric tons (MT) a year and would ensure a reliable and competitive source of feedstock for the company’s existing petrochemical plants.

Paras said the proposed naphtha cracker facility would produce raw materials for the company’s polyethylene and polypropylene plants in Batangas that have been on stream since 1998 and for which the company spent $350 million. “This would enhance the profitability of our operations and enable us to weather and even benefit from the cyclicality inherent in this business,” he cited.

Paras said backward-integration would encourage further investments in the midstream and downstream segments of the domestic petrochemical industry, thereby ensuring greater competitiveness. JG Summit Petrochemical is the remaining player in the midstream segment, which produces polymers or resins that are used as raw materials of downstream plastic producers. Other players, such as the Bataan Polyethylene Corp. (BPC) and Petrochemical Corp. of Asia and the Pacific (Petrocorp) have already closed down their facilities in Mariveles, Bataan.

Paras said the project is now under the planning stage and that a corresponding engineering study is being undertaken. He added that JG Summit Petrochemical is negotiating with its suppliers to finalize the costs of the project.

JG Summit Petrochemical, a joint-venture between the Gokongweis’ JG Summit Holdings Inc. and Marubeni Corp. of Japan, have been signaling an interest to establish a naphtha cracker facility in the Philippines since 1997. Estimates have it that the facility would cost a minimum investment of $600 million.But the Gokongwei group decided to put on hold the project due to government’s decision to form a consortium through the Philippine National Oil Co. instead that would have spearheaded the project.

Members of this group would have included Petronas of Malaysia, the Sultan of Brunei, Petron Corp., Philippine Resins Industries, BP Amoco Plc., D & L Industries Inc., Sumitomo, Itochu, Marubeni, Mitsui & Co., Mitsubishi, Chinese Petroleum and British Petroleum.

2004年12月15日　中国・ＡＳＥＡＮニュース速報

【フィリピン】イランから原料、ポリエチレン生産へ
http://www.e-plastics.gr.jp/japanese/nna_news/news/news0412_2/04121505.htm

　地場系持ち株会社メトロ・アライアンス・ホールディングス・アンド・エクイティーズはこのほどイラン国営石油化学公社の完全子会社、イラン石油化学商業（ＩＰＣＣ）からエチレン供給を受けることで覚書を交わした。バターン州のポリエチレン樹脂製造工場の原料として利用するもので、ポリエチレン生産を本格化するとみられる。

　両社が今回合意した内容は、イラン石油化学商業が来年から向こう６年間、メトロ・アライアンスにエチレンを供給するというもの。調印式にはプリシマ貿易産業相とイランのシャリアトマダリ商業相も参加した。

　それによれば、供給は来年から開始され、メトロ・アライアンスが運営するバターン・ポリエチレン（ＢＰＣ）で原料油として使うという。

　メトロ・アライアンスを所有する「プラスチック王」の異名を持つウイリアム・ガチャリアン氏は、操業停止中のＢＰＣの再建に取り組む方針を打ち出し、同社株83％を取得した。地元各紙によると既に撤退を決めていた英石油メジャーのＢＰとマレーシアの国営石油会社ペトロナス、住友商事からバターン州マリベレスにあるポリエチレン製造工場を３億5,000万米ドルで買収したとされる。同工場の生産能力は年産27万5,000～40万トンで国内最大規模を誇る。ただ、2002年８月以降は、密輸品の流入などの影響を受け操業を停止している。

■石化関税引き下げを
　一方、東南アジア諸国連合（ＡＳＥＡＮ）プラスチック産業連盟（ＡＦＰＩ）はフィリピンの貿易産業省に対し、石化製品の関税の引き下げを求める書簡を提出。ＡＳＥＡＮ自由貿易地域（ＡＦＴＡ）で取り組む税率軽減に協調するよう要請した。この中で同連盟は、完成品で５％、石油化学製品で10％の輸入関税率では国内の下流産業が被害を受け、国際競争力で後れを取ると指摘している。

　ＡＦＰＩにはフィリピン・プラスチック産業協会（ＰＰＩＡ）をはじめ、インドネシア、マレーシア、シンガポール、タイ、ベトナム、ミャンマーの業界団体が参加する。

　アロヨ大統領は、石油化学樹脂など一部製品を関税低減項目から除外し、関税率を７～10％とする大統領令第161号に署名している。ただ、同令の有効期限が年末までとなっているため、国内業者で組織するフィリピン石油化学製品製造業者協会（ＡＰＭＰ）はさらに６年間の期間延長を求めている。

Platts 2005/10/12

Philippine JG Summit close to deals on naphtha cracker project

Philippine conglomerate JG Summit Petrochemical Corp expects to have in place finance and EPC agreements for its much-delayed $450-mil naphtha cracker project by the end of this year, a senior company official said Wednesday. The project has been on the drawing board since the early 1990s.
"We are in talks with financiers and EPC contractors...we should close the contracts by the end of this year," Wilfredo Paras, executive vice-president of the company told Platts. Paras said he expected the cracker to be up and running by late-2008.
Located in Batangas, the naphtha cracker will have an ethylene production capacity of 350,000 mt/yr and would provide feedstock to the company's polyethylene and polypropylene plants. The plants are running at 50% of capacity and JG expects to ramp up rates to 100% after the cracker comes onstream, Paras said. The company has also begun scouting for naphtha supplies for the facility, he added.
The project, however, could face some hurdles should the government go ahead with its plan to lower import tariffs on mid-stream petrochemical products to 5% from 7-10%.
JG has requested the government not to cut import tariffs as this would kill the development of the domestic industry. "We are optimistic the government will look favorably at our request," Paras said.
Under the Asean Free Trade Agreement, the Philippines was to cut import tariffs on mid-stream petrochemical products in 2003 but delayed implementing the lower rates to aid local projects.
Besides JG Summit, State-run Philippine National Oil Corp had also been planned a naphtha cracker in Bataan to support the domestic petrochemical industry.
However, PNOC's project faced a major setback and was eventually suspended in 2003 when two key investors--BP and Malaysia's Petronas--pulled out of the Bataan Polyethylene Corp consortium. The cracker was to have supplied feedstock to BPC's polyethylene plant.

2006/2/7 UOP

UOP Selected by Petron’s Bataan Refinery to Provide PetroFCC^TM Technology
Maximization of propylene production targeted to help meet demand
http://www.uop.com/pr/releases/PetronFCC.pdf

UOP LLC, a Honeywell company, today announced that Petron Corp. has selected UOP’s PetroFCC^TM technology for a major upgrade of the thermal catalytic cracking (TCC) unit at Petron’s refinery in Bataan, Philippines.
Petron, the largest oil company in the Philippines, will construct a PetroFCC complex for the production of polymer-grade propylene as part of its ongoing goal to diversify into petrochemicals production and maximize benefits from existing facilities at the Bataan refinery.
The PetroFCC process leverages UOP’s extensive experience in fluid catalytic cracking (FCC) in a unique design that selectively converts hydrocarbon feedstocks, heavy vacuum gas oil (HVGO) in the case of Petron, to maximize the production of light olefins, such as propylene and aromatics, when coupled with an aromatics complex. Propylene is an important chemical intermediate used in the making of plastics used in a wide variety of applications, including food packaging and textiles.
“This PetroFCC project clearly illustrates the value that UOP can bring to an FCC-based refinery that is looking to diversify into the petrochemical markets,” said Mark Houdek, marketing manager for UOP, “It also demonstrates the flexibility of the FCC technology -- the traditional gasoline-producing workhorse -- to adapt and meet market needs and opportunities.”
Petron’s PetroFCC complex, which is scheduled for startup during the second quarter of 2008, is being designed for a propylene yield of up to 18 percent (weight) based on HVGO feedstock. This propylene yield is approximately three to four times greater than conventional FCC technology used for the production of traditional fuels.
This announcement follows the successful commissioning in May 2005 of a naphtha complex at the Bataan refinery. This complex includes a new Penex^TMunit and a CCR Platforming^TM unit, both designed by UOP. The Penex unit produces premium isomerate, a high-octane gasoline blending component, from light naphtha for the production of ultra-clean gasoline. The CCR Platforming unit is the premier naphtha reforming process for the production of high-octane gasoline and/or BTX (benzene, toluene, xylene) with over 190 units in operation worldwide.
Petron Corporation is the largest petroleum refining and marketing company in the Philippines. Petron operates the Petron Bataan Refinery, which has a crude capacity of 180,000 barrels per day.
UOP LLC, headquartered in Des Plaines, Ill., USA, is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and technical services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly owned subsidiary of Honeywell Specialty Materials, a strategic business group of Honeywell. Find out more at www.uop.com.
Honeywell International is a $28 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor’s 500 Index. For additional information, please visit www.honeywell.com.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.

2007/10/17　business.inquirer.net

JG Summit regains full ownership of petrochem unit

JG Summit Holdings Inc., the holding firm of the Gokongwei group, has acquired a 17.7-percent shareholding of Japanese conglomerate Marubeni Corp. in JG Summit Petrochemical Corp. and regained 100 percent of the subsidiary, JG Summit told the stock exchange.

An Inquirer source said JG Summit consolidated its ownership in JG Summit Petrochemical “to have more flexibility in pursuing different strategic alternatives for its petrochemical business.”

The source could not say what these alternatives were, citing confidentiality agreements.

The source gave the same reason for refusing to disclose JG Summit’s acquisition cost.

JG Summit Petrochemical’s revenue fell 53 percent in the April-June quarter to P1.37 billion from P2.91 billion in the same period last year, with sales volume down 56 percent.

Its plants produce multiple grades of polyethylene and polypropylene resins, which are used to fabricate large drums, bleach bottles, shopping bags, crates, nets, pails, films, adhesive tapes, cigarette and candy wrappers, cosmetics, pharmaceutical and food packaging materials, heavy-duty sacks, lamination films, industrial cosmetics, pharmaceutical and food packaging materials.

The company is a core subsidiary of JG Summit, which also has interests in property development, hotel management, textiles, banking and financial services, telecommunications, air transportation and power generation.

Last year, JG Summit said it would borrow as much as $475 million from multilateral sources for a naptha cracker plant it would build in Batangas City, south of Manila, to produce as much as 350,000 tons of raw materials for plastic. Company president Lance Gokongwei said the project cost was estimated at $600 million.

A naphtha cracker would boost the revenue of the petrochemical business to about $450 million a year from the present $150 million, he said.

The project would feed demand in the region, including China, he said.

ABS/CBS Interactive 2004/8/29

JG Summit revisiting naphtha cracker plans

JG Summit Petrochemical Corp., the petrochemical arm of the Gokongwei group, has revived plans to build the country’s first naphtha cracker facility, which would start commercial operations by the first half of 2008.

In a statement released over the weekend, JG Summit Petrochemical executive vice president and chief operating officer Wilfredo Paras said in the planned facility, which would manufacture raw materials for petrochemicals, would have a production capacity of 350,000 metric tons (MT) a year and would ensure a reliable and competitive source of feedstock for the company’s existing petrochemical plants.

Platts 2007/10/16

Japan's Marubeni exits Philippine polyolefins firm JG Summit

Japan's Marubeni Corp. has exited Philippine polyolefins joint venture company JG Summit Petrochemical Corp. by selling its 17.72% share to local partner JG Summit Holdings, a statement from JG Summit Holdings said.

As a result, JG Summit Petrochemical Corp. has become a wholly owned subsidiary of JG Summit Holdings.

JG Summit Petrochemical Corp., which started commercial operation in 1998, has the capacity to produce 200,000 mt/year of polyethylene and 180,000 mt/year of polypropylene in Barangay Simlong, along Batangas Bay in Batangas city. The company is one of two PE producers in the Philippines, the other being Bataan Polyethylene.

The publicly-listed JG Summit Holdings is one of the Philippines' largest conglomerates with investments in food manufacturing, property development, hotel management, banking and financial services, telecommunications, textiles, petrochemicals, air transportation, power generation, printing and packaging.

Marubeni made a similar petrochemicals divestment in Southeast Asia in 2005 when it sold its stake in Indonesian olefins and polyethylene manufacturer Chandra Asri.

2008/6/18 Thomson Financial

Gov’t may sell Petron stake to help poor

The government is considering selling its remaining 40-percent stake in oil refiner Petron Corporation to raise money to help the poor, Finance Secretary Margarito Teves said Tuesday.

"We hope to raise P30 billion ($678 million) from privatization this year," Teves said in a statement.

He said Petron, the country's largest oil refiner, and PNOC-EC, the oil exploration arm of the government's Philippine National Oil Co. (PNOC), had not been part of the state assets planned to be privatized.

"However, we are looking at the possibility of selling these assets should we need more resources to help the poor cope with rising oil and food prices," Teves said.

The government has been offering subsidies to help the poor in the payment of electrical bills and fuel. But critics say this system will have only minimal benefits for the neediest.

Earlier this week, Energy Secretary Angelo Reyes said Manila had turned down the London-based Ashmore Group's tender for the government's Petron stake, saying the government could sell its shares at a premium.

Ashmore bought 40 percent of Petron from Saudi Aramco in May this year for $550 million and tendered for the remaining 60 percent worth about $827.23 million.

Of the 60 percent, small investors hold 20 percent.

Under Philippine law, a company owning more than 30 percent has to make a general offer for the remainder of the shares.

If Ashmore had won the government's stake, it is highly unlikely that it would have been allowed to take over the company. Philippine law only allows foreigners 49 percent ownership.

Petron has 9.375 billion outstanding shares and a market capitalization of P55.3 billion.

Saudi Aramco bought its stake in 1994 for $535 million.

2008/7/22 Reuters

Ashmore unit buys majority stake in Manila's Petron

The Ashmore Group will acquire a 50.57 percent majority stake in Philippine oil refiner Petron after its tender offer closed on July 14, an Ashmore unit said on Tuesday.

But the London-based investment group failed to achieve 100 percent ownership of the Philippines' biggest refiner after the government, through Philippine National Oil Co., opted to hold onto its 40 percent stake.

Energy Secretary Angelo Reyes said the government would maintain the chairmanship of the company.

"Philippine National Oil Co. (PNOC) will always assume the position of chairman. The president will come from Ashmore. The position of CEO is rotated every year and it will be PNOC this year, and next year Ashmore," Reyes told reporters.

State-run PNOC did not participate in the tender offer as the government has said it wants to sell its Petron holdings at a higher price. Ashmore's tender valued Petron at 6.531 pesos a share.

Petron finished up 1.69 percent at 6.0 pesos on Tuesday in a index .PSI down 0.27 percent.

In May, local business clan the Gokongwei's offered to buy PNOC's stake in Petron at 6.55 pesos per share.

The government hopes to sell its Petron stake in the fourth quarter to help fund its budget deficit expected to reach as much as 75 billion pesos ($1 billion) this year.

Last year, the government raised around 90 billion pesos, a record, via asset sales, narrowing its budget deficit to 12.4 billion pesos.

SEA Refinery Holdings B.V., owned by Ashmore Investment Management Limited, agreed to buy a 40 percent stake in Petron from Saudi Aramco for $550 million earlier this year.

Last month, it offered to buy the remaining 60 percent stake, or 5.63 billion common shares, in Petron at 6.531 pesos per share or $0.146.

Under Philippine corporate laws, an entity buying 30 percent stake in any company must undertake a tender offer.

At the end of the tender offer last week, SEA Refinery received tenders for a total of 990.98 million common shares, or a total of 6.5 billion pesos, from minority shareholders, the company said in a statement to the stock exchange.

($1=44.61 Philippine peso)

　

The 50.57 percent stake makes Ashmore the largest shareholder in publicly-listed Petron. The Philippine government holds 40 percent and the balance is held by small investors.

Ashmore bought some 10.57 percent of Petron from small investors between June 16 and July 14 at 6.531 pesos (14.6 cents) per share -- or about 146 million dollars -- Petron told the Philippine Stock Exchange in a statement.

Ashmore bought Saudi Aramco's 40 percent holding in Petron for 550 million dollars in May. The government has said it might sell at the right price.

Saudi Aramco bought its stake in 1994 for 535 million dollars.

2008/7/22 Reuters

Ashmore unit buys majority stake in Manila's Petron

　

The 50.57 percent stake makes Ashmore the largest shareholder in publicly-listed Petron. The Philippine government holds 40 percent and the balance is held by small investors.

Ashmore bought some 10.57 percent of Petron from small investors between June 16 and July 14 at 6.531 pesos (14.6 cents) per share -- or about 146 million dollars -- Petron told the Philippine Stock Exchange in a statement.

Ashmore bought Saudi Aramco's 40 percent holding in Petron for 550 million dollars in May. The government has said it might sell at the right price.

Saudi Aramco bought its stake in 1994 for 535 million dollars.

2008/3/15 Thomson Financial

PNOC to evaluate Aramco sale of Petron stake to Ashmore

State-owned Philippine National Oil Co. (PNOC) said Friday Saudi Aramco had expressed a desire to sell its entire 40-percent shareholding in oil refiner and retailer Petron Corp. and that it would evaluate the situation “to determine the best course of action."

PNOC, which owns 40 percent of Petron, made the disclosure after Petron announced that London-listed Ashmore Group had offered to buy Saudi Aramco's 3.75 billion Petron shares through its unit, SEA Refinery Holdings, for $550 million.

Saudi Aramco, , the world’s largest producer of crude oil, supplies the crude oil requirement of Petron, which accounts for about 40 percent of Philippine fuel requirements. Its unit Aramco Overseas Co. holds its 40-percent stake in Petron.

The remaining 20 percent of Petron is listed on the stock exchange.

PNOC president and chief executive Antonio Cailao said in a statement, "We have received a notice from Aramco Overseas regarding the proposed sale of its shares in Petron, and will carefully evaluate this filing with the diligence and rigor necessary and appropriate to determine the best course of action."

Cailao said the government would study carefully the government's course of action in the next two months.

He said PNOC would evaluate the terms and conditions associated with Ashmore's offer and decide whether to exercise its "right of first offer" to buy the shares.

President Gloria Macapagal-Arroyo said in a statement Friday that the Philippine government "appreciates that Aramco Overseas’ business focus has changed since it made its investment in Petron 14 years ago."

Arroyo said she was pleased that Aramco Overseas "will maintain its ties with the Philippines through the commitment by its parent, Saudi Aramco, to maintain strong commercial ties with Petron after the sale of the Aramco Overseas shares to an approved investor."

"Should Ashmore receive PNOC's approval, it will mean that a company that knows the Philippines well through its investment in our international financing and in an important utility, Maynilad Water, will be expanding its operations in our country," Arroyo said.

The Saudi Aramco decision to sell out of Petron somewhat shook the stock market Friday. Petron shares fell P0.10 on the Philippine Stock Exchange to close at P6.00 from Thursday’s finish of P6.10.