PTTGC to invest in Indonesian petrochemical complex
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PTT Global Chemical (PTTGC) will sign a joint-venture agreement with Indonesia's national oil firm Pertamina on December 10 to set up a petrochemical complex with an investment of between US$4 billion and $5 billion (Bt127 billion to Bt158 billion), chief
He added that the country’s political instability would not have any impact on the company’s business.
Both companies will have a 50:50 stake in this downstream-to-upstream project. They will also sign a deal to market products from the project jointly.
After the deal is signed, they will seek a potential third partner for the project, and both will discuss share dilution accordingly.
Bowon said PTTGC was also expected to wrap up talks with China’s Sinochem International next month on the possibility of setting up a petrochemical business in that country by building a polyurethane plant and polycarbonate plant there.
He said the company’s investment in China and Indonesia was for the medium term. Its short-term investment plans, all of which have started and amount to $1.5 billion per year, are all for local projects.
They include the expansion of its olefin plant’s capacity by 1 million tonnes, expected to be complete in 2016, and the capacity expansions of its ethylene-oxide and aromatics plants, scheduled for completion in 2015.
PTTGC posted sales revenue of Bt141.394 billion in the third quarter, down 3 per cent year on year, and net profit of Bt9.610 billion, down 25 per cent.
The company was affected by three unexpected incidents. One of these occurred at its low-density polyethelene-pellet plant, which started operations late last year. It suffered a technical glitch that required repairs and maintenance of the plant in July. Those repairs have been completed. Then came the oil leak off Rayong in late July.
The third incident occurred in August when lightning struck the waste heat recovery unit of PTT’s Gas Separation Plant Unit 5, which supplied PTTGC’s I4-2 olefin plant (production capacity of 450,000 tonnes per year). This had caused the shutdown of GSP Unit 5. Currently the unit can operate at only half capacity.
In the first nine months, revenue dropped 6 per cent year on year to Bt394.590 billion, but net profit rose 7 per cent to Bt25.857 billion.
Bowon believes the company’s financial results next year will be better than this year, as the price of olefin-based plastic pellets is on the increase. The product contributes 55 per cent of PTTGC’s group total revenue. Net profit next year is also expected to be better than this year.
