Bangchak plans ethanol plant to meet Asia demand

20 March 2008 12:21  [Source: ICIS news]

SINGAPORE (ICIS news)--Thailand’s Bangchak Petroleum is studying a proposal to build an ethanol plant in the country to take advantage of rising demand for the product in the region, a company official said on Thursday.

"There is excess demand in Thailand, so we need to increase production for export," the source added.

"The study is under process and the plan has yet to be confirmed. The details have not been agreed on. They are in the process of being worked out."

"Demand for ethanol in the region is going up and Japan, with its high demand, could be one of our potential markets," he added.

If it progressed as planned, the company expected to work with a Thailand-based joint venture partner for the project, the source said.

"We are looking at potential partners, mostly Thai companies," he said.

The source declined to disclose investment details or the proposed capacity of the plant, which were "under discussion and review".

"The plan is expected to be completed by the latter part of the year, and if it goes through, construction of the plant could begin in the first half of next year," he added.

The company is also developing a 99m litre/year biodiesel plant located in Bang Pa-in, Thailand in which it holds a 70% stake.

"Right now, we are focused on that," the official said. 

Bangchak produces an average 52,300 bbl/day of refined products including gasoline, kerosene and gas-oil, but no petrochemical products yet. "If this the ethanol plan goes through, it will be a first," he added.

The official confirmed that the company was spending $376m (€240.64) toward improving its fuel-oil cracking plant, and expected to complete work in October.

($1 = €0.64)

By: Arujnee J Ram
+65 6780 4359

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