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.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|