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.
三井化学、タイに技術輸出するＨＤＰＥ設備の基本設計を開始
完成後は当面の２年間に１５万トンを引き取る考え
三井化学は、タイの石油化学企業「ＮＰＣ（ナショナル・ペトリケミカル）」にＨＤＰＥの製造技術を供与することにしてこのほど同設備の基本設計作業を開始した。年内にも同作業を完了したい意向。
これを受けてＮＰＣは、２００３年後半にラヨン県マプタプート地区に年産２５万トン能力の大型ＨＤＰＥプラントを建設する計画。着工は来年春もしくは年半ばになりそう。
ＮＰＣは、タイで唯一のエタン分解法を採用しているエチレンセンターで、現在のエチレン設備能力は年産４０万トン。今回の計画が実現すると、同社自身による初の誘導品分野への進出となる。
この結果、タイのＨＤＰＥの設備規模はＬ−ＬＤＰＥとの並産プラントを含めて年産１３０万トンとなる。このうちの同９６万トン設備は三井化学の技術を採用してのものとなる見込み。
今回のＮＰＣの計画で注目されるのは、技術供与契約の中に三井化学による製品引取りのオプションが含まれている点だ。三井化学では、これに基づき、子会社の三井ハイポリマーを起用して２００４年から２００５年にかけての２年間に合計１５万トンを引き取って中国や東南アジア市場で消化していく考え。
現在も、同じタイの技術供与先のＢＰＥから年間６万トンを引き取って中国などに販売している。また、同社千葉工場から年４万トン前後をアジア地域に輸出している。これにＮＰＣからの引き取り分が加わるとアジア市場における同社の基盤は一段と強固なものとなる。
Platts 2002/7/31
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
タイの石油化学業界の再編が具体化してきた。ＰＴＴ（タイ石油公社）傘下のナショナル・ペトロケミカル・コーポレーション（ＮＰＣ）はこのほど、三井物産とバンコク銀行の合弁会社であるバンコックポリエチレン（ＢＰＥ）を買収する方針で基本的な合意に達した。財務内容の精査を行い、今月末までに買収価格の詰めの交渉を行い最終合意する見通し。タイでは、予想されていた水平統合はオレフィン市況の上昇などにより具体化していないが、アップストリームを持たないポリオレフィンメーカーとダウンストリームを持たないオレフィンメーカーの間での垂直統合が黒体化することになる。
ＮＰＣによるハンコックポリエチレンの買収が具体化すれば、タイの石油化学はＰＴＴを中心とするグループ（ＮＰＣ，ＴＰＣ）、と民間のサイアムセメント、ＴＰＩの３つのグループに再編成されることになる。
ＮＰＣは、同国のエネルギー資源である天然ガス資源をベースにしたエタン分解により同国初のエチレンセンターとしてスタートしたが、第２クラッカーであるＴＯＣのスタートアップや、ダウンストリーマーだったサイアムセメント、さらにはＴＰＩがアップストリームに遡及していくなかで、ダウンストリーマーをなくし、生産能力の６割以上のオレフィンを外販しなければならないポジションに置かれている。
現在、石油化学はオレフィン市況は比較的高値安定で推移する一方、ポリオレフィンの市況は競争が激しく十分なスプレッドが確保できない状況が続いている。こうしたなかで、ＮＰＣは欧州やアジア市場向け輸出事業がこれまで好調に推移、業績も順調に拡大している。ただ、オレフィンメーカーとしてはダウンストリームまでの一貫体制を構築することが望ましいと判断、ポリオレフィン専業メーカーとして業績的に厳しい状況が続いているＢＰＥの買収に乗り出す。
ＢＰＥはバンコク銀行と三井物産の合弁会社で、三井化学から同社の高密度ポリエチレン技術を導入「タイゼックス」の商品名で高密度ポリエチレン年産２０万トンの生産体制を確立している。しかしながら、オレフィメ事業を持たない弱さが収益を直撃、厳しい経営内容が続いている。
親会社の状況も、アジア経済危機によってバンコク銀行自体が大きなダメージを受けたことに加えて、一方の親会社である三井物産も、アジアにおける化学事業の最適化を図っており、すでにベトナムの塩ビ事業からは直接投資から間接投資に切り替えている。ＢＰＥとしては、ＮＰＣとの統合によりアップストリーム遡及できることで、コスト競争力が増すことを期待している。現在、ＢＰＥは主力オレフィンソースをＴＯＣから得ているが、今後、ＮＰＣとパイプラインを結び、ＴＯＣとの長期契約分以外をまずＮＰＣから供給を受ける。
2004/3/3
中国・ＡＳＥＡＮニュース速報
タイ国営石油、ポリエチレン社買収計画
http://www.e-plastics.gr.jp/japanese/nna_news/news/news0403_1/04030308.htm
２日付バンコクポストなどによれば、国営石油ＰＴＴは子会社の石油化学大手タイ・オレフィンズ（ＴＯＣ）と組み、バンコク銀行（ＢＢＬ）からバンコク・ポリエチレン（ＢＰＥ）の株式を取得する計画だ。高密度ポリエチレン（ＨＤＰＥ）工場の獲得で、ＴＯＣが生産するエチレンの安定した供給先を確保する。バン銀側は銀行業務に集中する。
ＢＰＥには、バン銀と創業家のソーポンパニット家が計40％、三井物産が35％出資している。2000年には、ＰＴＴ傘下の石油化学大手ナショナル・ペトロケミカル（ＮＰＣ）がバン銀と株式取得の交渉を行ったが、価格面で合意にいたらなかった。
ＮＰＣのＨＤＰＥ工場は今夏に稼働する予定で、先月末にはエチレンの２倍増産を発表した。ＴＯＣのエチレン年産能力は38万5,000トン。
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
【タイ】石化大手ＮＰＣ、エチレン生産２倍
http://www.e-plastics.gr.jp/japanese/nna_news/news/news0402_4/04022610.htm
石油化学大手ナショナル・ペトロケミカル（ＮＰＣ）は、基礎原料であるエチレンの生産量を２倍に増やす。筆頭株主である国営石油ＰＴＴとの合弁事業となる見通しで、ＰＴＴからの原料購入量も増加する。今年からは汎用樹脂のポリエチレン生産も開始。年内には高密度ポリエチレン（ＨＤＰＥ）工場の建設にも着手し、事業領域を川下に広げる。
国営石油ＰＴＴとＮＰＣは24日、エチレン生産に向け合弁企業を設立する方針を発表した。エチレンは供給過剰が続いていたものの、内需拡大や好調な対中輸出により「2004年には需要と供給のバランスが取れる」（キムエン証券）見込み。市況も改善が続いており、ＮＰＣは年産を約84万トンと２倍に増やすことを決めた。ＰＴＴも設備拡張に資金を拠出する。
ＮＰＣは増産に向けＰＴＴからのエタン購入量を年39万〜50万トン上積みする。天然ガス分離装置（２カ所）の増強の事業化調査（ＦＳ）を行うＰＴＴとの覚書（ＭＯＵ）にも調印した。
25日付バンコクポストによると、ＮＰＣは24日、低密度ポリエチレン（ＬＤＰＥ）事業に進出すると明らかにした。投資額は３億5,000万米ドル。年内に着工し、06年10〜12月期の完工を目指す。１億3,000万米ドルを投じたＨＤＰＥ工場は今夏に稼働する予定。今年の生産量は13万トン（稼働率50％）、来年は約21万トン（約80％）を見込む。
02年時点の国内生産能力はＨＤＰＥが87万2,000トン、ＬＤＰＥは25万8,000トン。
■今年２割増収を予想
ＮＰＣはＰＴＴが38％、サイアム・セメント（ＳＣＣ）が25％出資する官民合弁会社。1992年に東部ラヨン県マプタプット工業団地で生産を開始した。最大年産はエチレン43万7,000トン、プロピレン12万7,000トン。
今年のオレフィン（エチレンとプロピレン）価格は昨年の１トン＝512米ドルから600米ドルに上昇する見込み。ＨＤＰＥ生産開始も重なるため、ＮＰＣの売上高は前年比２割増える見込みだ。02年業績では売り上げの６割をエチレンが占めた。
中国・ＡＳＥＡＮニュース速報 2004/2/26 タイ紙
【タイ】合弁でフェノール生産、国営石化４社
http://www.e-plastics.gr.jp/japanese/nna_news/news/news0402_4/04022611.htm
石油化学大手のアロマティクス（タイランド）（ＡＴＣ）は24日、親会社のＰＴＴなど３社と共同で、フェノールとアセトンを生産すると発表した。投資額は２億米ドル、最大年産はフェノール20万トン、アセトン12万5,000トン。工場は2007年４〜６月期に完工する。事業への出資比率はＰＴＴ40％、ＡＴＣ20％、ナショナル・ペトロケミカル（ＮＰＣ）20％、タイ・オレフィンズ（ＴＯＣ）20％。
Business Day 2004/2/25
NPC to double
capacity as demand rises 他の報道
http://www.bday.net/detail.asp?id=38494
National Petrochemical
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
http://www.petrochemical-news.com/P-V42N29.pdf
National Petrochemical
Plc (NPC) of Thailand is seeking board of director approval for a
joint venture with Thailand's PTT to produce ethylene and
polyethylene (PE).
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.
PTT’s Acquisition of 31.5% Ownership
Interest in TPI
http://www.pttplc.com/en/ptt_core.asp?page=nc_pr_bu_detail&id=472
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.
The Plastic
Exchange 2005/11/18
PTT Polyethylene Company Ltd. Selects UNIPOL(TM) PE; New
Facilities Will Include Metallocene Technology
http://www.theplasticsexchange.com/Public/News_Template.aspx?Buffer=&Id=72562822
Univation
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.
2006/2/16
Business Wire
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.
Platts 2006/9/8
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.
Acquisitions
good for PTT
Chemical
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.
Platts 2007/7/23
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
mt/year
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.