Thai PTT hopes three more projects get court clearance to proceed

04 December 2009 11:29  [Source: ICIS news]

By Pearl Bantillo and Nurluqman Suratman

SINGAPORE (ICIS news)--Southeast Asia’s oil and gas giant PTT is hopeful that three of its 18 projects still under suspension will be allowed to proceed based on a provision stipulated in a court ruling on 2 December, a company spokesperson said on Friday.

The company’s gas separation unit 6, its barrier, cross-linked polyethylene (BPEX) expansion project and its ethanolamine project had been approved prior to the adoption of the country’s Constitution in August 2007, the spokesperson said.

The Supreme Administrative Court upheld on Wednesday the suspension of 65 out of the 76 projects in Rayong province, where the Thai petrochemical hub of Mab Ta Phut is located, citing Article 67 of the highest law of the country, which guarantees the right of its people.

In a decision in late September 2009, the Thai Central Administrative Court issued an injunction on all 76 projects, heeding the call of provincial residents who claimed that the projects were environmentally harmful.

PTT's 25 projects were included in the list and another 20 are those of Thai conglomerate Siam Cement Group (SCG).

On 2 December, the Supreme Court cleared eleven projects that promote the use of clean energy, seven of which were PTT’s and two SCG’s, but the bulk of the companies' projects were suspended.

Beyond the projects directly hit by the court injunction, start-ups of other major projects could be delayed, said Naphat Chantaraserekul, a Bangkok–based analyst at Kim Eng Institutional Research.

While the 1m tonne/year ethane cracker of PTT Chemical, a subsidiary of PTT, is not among the affected projects from the very start, its operation would be impacted if PTT’s gas separation unit 6 project failed to get cleared by the court, he said.

The cracker was supposed to derive its gas feedstock from this unit.

Naphat said that PTT might have to divert gas from another plant that was scheduled for maintenance in the first quarter of next year to the new unit in Rayong.

“The impact would not just be about one or two plants shutting down. It will impact customers, suppliers and creditors, especially those projects that are involved in project financing. Without them coming in, those new projects cannot start,” Naphat of Kim Eng said.

major Dow Chemical, in partnership with SCG, also has a petrochemical project in Mab Ta Phut under construction and due to come on stream early next year.

"We are currently assessing the impact of the court’s decision. We are in full compliance with existing regulatory requirements and remain highly committed to ensuring that all of our projects fully comply with government regulations,” a Dow spokesperson told ICIS news.

There may also be wider implications on investment flows in Thailand with the suspension of the Rayong projects.

"Foreign direct investment into Thailand might slow down as a result (of the ruling) as investors will be cautious and we will see come impact to the economy because there would be a chain effect [that would] take place," said Naphat.


65 Rayong Projects Under Suspension

as of 4 December 2009



Barrier, cross-linked polyethylene (BPEX) expansion

Bangkok Polyethylene

Surfaced steel sheet expansion

G Steel

Ethanolamine project

Tha Ethanolamine

Epoxy-resin expansion

Aditya Berla Chemicals (Thailand)

Hot-rolled structural steel production

Siam Yamato Steel

Coated steel-sheet expansion projection

Siam Tinplate

Sixth gas separation plant


Cold-rolled stainless steel expansion project

Thainox Stainless

Third-phase steel production

Tycoons Worldwide Group (Thailand)

Extended ethylene oxide ethylene glycol manufacturing

TOT Glycol

Acrylonitrile-methyl metacrylate manufacturing

PTT Asahi Chemical

Bisphenol A manufacturing

PTT Phenol

Extended polycarbonate expansion

Thai Polycarbonate

Methyl-metacrylate manufacturning (second plant)

Thai MMA

Polyethylene expansion

Siam Polyethylene

Polyvinyl plastic-power expansion

Thai Plastic and Chemicals

Vinyl chloride monomer expansion

Thai Plastic and Chemicals

Propylene oxide and propylene glycol manufacturing

MPT HPPO Manufacturing

Polyethylene expansion

PTT Chemical

Extended part of Hemaraj, Industrial Estate in Pluak Dan district

IEAT and Eastern Industrial Estate

Amendments to phenol plant

PTT Phenol

ECH pilot plant

Aditya Berla Chemicals (Thailand)

Acrylonitrile-methyl metacrylate project

PTT Asahi Chemical

Polyethylene project

Siam Polyethylene

Bisphenol A expansion

Bayer Thai

Extension of Hemaraj Industrial Estate in Mab ta Phut

IEAT and Hemaraj eastern Seaboard Industrial Estate

Chloralkaline expansion project - vinyl plant improvement


Polyethylene expansion

PTT CHemical

Bisphenol A manufacturing

PTT Phenol

Steel smelting plant - steel structure project

AISCO Resources Pte

NBR latex manufacturing

Bangkok Synthetics

Nylon expansion

Ube Nylon

PTA-CTA expanion

Siam Mitsui PTA

Steel rod expansion

BRP Steel

Aromatics efficiency enhancement

PTT Aromatics and Refining

DME removal unit, hydrocarbon scrubber installation

Bangkok Synthetics

Formaldehyde-urea formaldehyde expansion

Vanachai Chemical Industries

Changes to propylene oxide-poylene glycol plant

HTP HPPO Manufacturing

Changes to polyethylene plant

Siam Synthetic Latex

Addition of catalyst and pipe compound units to polyethylene plastic pellet plant

Thai Polyethylene

Spare cracking unit construction for olefins plant

PTT Chemical

Acrylonitrile methyl methacrylate manufacturing plant

PTT Chemical

Acrylonitrile methyl methacrylate manufacturing plant

PTT Asahi Chemical

Addition of compound production unit to BPEX plant

Bangkok Polyethylene

Polyethylene terephthalate expansion

Thai Pet Resin

Polycarbonate expansion

Bayer Thai

Olefins plant enhancement

SCG Chemicals

Polyethylene plastic pellet manufacturing plant

Thai Polyethylene

IRL Industrial Estate

IEAT and IRL 1996

Enlargement of cold-riolled and galvanised steel manufacturing area

Blue Scope Steel (Thailand)

Environment report on synthethic rubber production

BST Elastomers

Environment report on hydrogen production

MTP HP JV (Thailand)

Environment report on plastic power production

Thai Plastic and Chemicals

IPP Industrial Zone

IPP (Thailand)

Galvanised steel sheet manufacturing project

Not available

Galvanised steel sheet manufacturing project

JFE Steel Galvanising (Thailand)

Pluak Dang Industrial Park project

Pluak Dang Industrial Park

Indsutrial waste service centre

Siam Environmental Technology

Petrochemical wharf and depot expansion

Mab Ta Phut Tank Terminal

Petrochemical tank wharf expansion

Mab Ta Phut Tank Terminal

Co-generation power lant

Glow Hemaraj Energy

Natural gas pipeline to ink PTT Utility - Aromatics Thailand Mab Ta Phut Olefins

Aromatics (Thailand)

Power plant

Amata Steam Supply

Petrochemical pipeline

Styrene Monomer-Siam Polyethylene Rayong Olefins

Second central utility centre

PPT Utility

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Please read John Richardson's Asian Chemical Connections blog

By: Nurluqman Suratnam

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