IRPC considers JV for specialised production

President Atikom Terbsiri said yesterday that IRPC would make a decision on the investment this year. It will seek a joint-venture partner that has the technology to produce specialised chemicals from propylene.
“This will be another big project for IRPC. We expect to hold more than 50 per cent of the joint venture,” he said.
The project to make propylene derivatives is not part of IRPC’s Phoenix programme, a regional integrated petrochemical and refinery project worth US$1.3 billion (Bt40.3 billion).
Atikom said the project to make specialised chemicals would use propylene as a major compound, as the company wants to maximise the benefits of that substance. IRPC this year will invest in a deep catalytic cracking (DCC) project, which will turn long residue – the residue that remains after the atmospheric distillation of crude oil – into propylene.
The project’s investment value is $800 million to $900 million. Bid submissions for the project contractor will be closed in June, and the contractor is expected to start construction in the third quarter.
The DCC project will increase propylene production capacity by 300,000 tonnes per year. Currently, IRPC has annual propylene capacity of 240,000 tonnes. By midyear, the capacity will be increased by 100,000 tonnes to 340,000 tonnes per annum after the company commences its propylene booster project. The additional 100,000 tonnes of propylene will replace imports, reducing the company’s raw-materials costs.
“After the DCC project is completed, IRPC will have propylene production capacity of 640,000 tonnes per year. We will use about 340,000 tonnes per year for polypropylene production.
“The remaining 300,000 tonnes will be used for making specialised chemicals so that we can make value-added products,” Atikom said.
He added that the company this year targeted 15-per-cent growth in revenue from Bt236 billion in 2011. Its gross integrated margin may not improve much this year because of high global oil prices, |he said.