Thai PTT to double investment in utilities jv project

29 October 2004 08:37  [Source: ICIS news]

SINGAPORE (CNI)--PTT Pcl, Thailand’s monopoly natural gas company, said on Friday that it would increase its investment in a planned joint-venture utilities project and expand the plant's capacity in light of higher demand from petrochemical plants.

As a result of the new requirements, the investment cost has risen to Baht4.83bn from Baht2.43bn and the internal rate of return has fallen from 15.44% to 12.19%. PTT’s portion of the investment would rise to Baht644m from Baht320m.

The company holds a 40% equity stake in the project while its three joint venture partners - National Petrochemical Co (NPC), Thai Olefins Co (TOC) and Aromatics (Thailand) Co (ATC) affiliates - hold a 20% stake each.

Initially the project was to provide steam and electricity to the PTT group’s planned cumene/phenol joint venture, and TOC’s planned monoethylene glycol (MEG) plant. However, during the process of the project, it was realised that the projects - along with a recently announced PTT-NPC joint- venture cracker and low-density polyethylene (llpPE) project - would require significantly more power and steam.

PTT said the demand for electricity has increased to 88MW from 48MW, while the demand for steam increased to 295 tonne/hour from 115 tonne/hour.

The phenol project startup is scheduled for the second quarter of 2007. The project cost of about $200m (Euro162.1m) will be borne by PTT (40%) and the other three affiliates (20% each).

TOC's 300 000 tonne/year MEG project is expected to be onstream in early 2006.

The NPC-PTT 400 000 tonne/year ethane cracker and a 300 000 tonne/year low density polyethylene (ldPE) are expected come onstream in the first quarter of 2008.

All projects are based in Mab Ta Phut, Rayong province.

By: Chris Myrick
+44 208 652 3214

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