Feedstock shortage hits Thailand HDPE production

09 May 2007 09:05  [Source: ICIS news]

SINGAPORE (ICIS news)--A shortage of onsite ethylene feedstock has affected production at two high density polyethylene (HDPE) plants in Thailand, a source at PTT Chemical, Thailand’s largest olefins producer, said on Wednesday.

PTT Chemical’s 250,000 tonne/year HDPE plant at Mab Ta Phut, Rayong province, is running at 75% capacity, and Bangkok Polyethylene (BPE), a wholly-owned subsidiary of PTT Chemical, is operating its 250,000 tonne/year HDPE plant at the same location at 90% capacity, the source said.

“PTT Chemical’s HDPE production was cut due to reduced ethylene supply from its 460,000 tonne/year cracker at the same site,” he said.

ICIS news reported earlier that the cracker, formerly owned by National Petrochemical (NPC), had been operating since late last week between 75-100% of its capacity due to technical issues.

“Bangkok Polyethylene’s HDPE production was affected due to reduced ethylene supplies from another cracker operated by PTT Chemical,” he said.

The second cracker of 300,000 tonne/year capacity, formerly known as TOC No.2, is running at below capacity due to ethane gas feedstock shortage, he said.

The lower HDPE production has not affected the domestic market as supply from other local producers is sufficient to cover local demand which is not very strong at the moment, traders said.

The other local HDPE producers are Thai Polyethylene and IRPC.

By: Chow Bee Lin
+65 6780 4359

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