Thailand's TPI mulls output cut at Rayong complex from Jul

17 June 2005 10:39  [Source: ICIS news]

SINGAPORE (CNI)--Thai Petrochemicals Industry (TPI) plans to slash production at its petrochemical complex at Mab Ta Phut in Rayong by around 40% from July when its water supply will be reduced, a source close to the company said on Friday.

 

The plants at the complex are currently operating at full capacity, the source said, but he added that operating rates could be cut by as much as 30% during the first stage of the water cuts, which starts in early July.

 

The company produces 350,000 tonne/year of ethylene, 170,000 tonne/year of propylene, 350,000 tonne/year of polyethylene (PE), 450,000 tonne/year of polypropylene (PP), 120,000 tonne/year of xylenes, 220,000 tonne/year of styrene monomer (SM) and 120,000 tonne/year of expandable polystyrene (EPS) at the complex.

 

Thailand is entering its rainy season, but no rain has fallen at the reservoir which supplies water to the Mab Ta Phut petrochemical hub. This reservoir also provides water to tourism areas such as Pattaya and the agricultural sector in the eastern region, a market source added.

 

Water is essential for processes such as heat exchanging and for operating cooling towers in a naphtha cracker.

By: Steve Tan
+65 6780 4359

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