24 December 2009 05:21 [Source: ICIS news]
By Nurluqman Suratman
SINGAPORE (ICIS news)--Thai petrochemical stocks extended their gains on Thursday on reports that the national government supports the appeal to lift suspension on some of the 65 major projects in Mab Ta Phut, Rayong province.
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Integrated Refinery and Petrochemical Complex (IRPC) was steady at Bht4.44 and Siam Cement was unchanged at Bht235.
The Thai Cabinet has agreed to ask the Supreme Court to take out 19 other petrochemical projects in its suspension list, in addition to the initial list of 11 that were allowed to proceed, according to media reports.
The government deemed that these 19 projects have very limited environmental impact, based on reports.
The Siam Cement Group, which has a naphtha cracker affected by the suspension, noted that the Thai government is merely acting as a consolidator in the appeal process, said a company source.
On 2 December, the
Seven of PTT’s projects had been cleared to push through, along with two SCG projects.
While a government intervention lifted market sentiment, the decision to let the projects proceed ultimately lies with the courts, analysts said.
“We still have to wait what the government will give in its file to the Supreme Court. We need to wait for the court to decide,” said Suttichai Kumworachai, a Bangkok-based analyst with brokerage KGI Securities.
The government’s move was largely seen as symbolic to shake off the negative sentiment that developed in the market when the project suspension was announced, said Naphat Chantaraserekul, a Bangkok–based analyst at Kim Eng Institutional Research.
“It is unlikely that the court will be influenced by the government. The court will decide based on the law and not what the government asked them to do,” he said.
($1 = Bht33.32)
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