02 March 2012 11:11 [Source: ICIS news]
(adds analyst comments, background)
By Nurluqman Suratman
“We just did a pre-feasibility study with a partner. We will do a year-long feasibility study and decide whether to go ahead [with the cracker project],” the spokesperson said, without elaborating.
The $795m (€596m) acquisition of Clear Lake, Texas-based
Old World is the largest single EO/EG production facility in the
The facility also produces 204,000 tonnes/year of purified EO and 358,000 tonnes of monoethyelene glycol (MEG).
IVL’s pipeline of projects in which it plans to invest $4-5bn over the next years, could include the US shale gas-based cracker, said Naphat Chantaraserekul, a Bangkok-based analyst at brokerage DBS Vickers Securities.
“[IVL’s] Management believes that they can capitalise on cheap shale gas and establish upstream to downstream value chain for polyester,” Chantaraserekul said.
IVL plans to commence work on the cracker in 2015 and complete the project in 2017, he added.
The Thai firm has plans to raise its combined global production capacity for purified terephthalic acid (PTA), polyethylene terephthalate (PET) and fibres to at least 10m tonnes/year by 2014, from about 5.5m tonnes/year currently.
Taking into account the company’s recent acquisitions and expansions, IVL’s overall production capacity, excluding capacity in associated firms, will rise by 23% to 6.5m tonnes in 2012, Chantaraserekul said.
The company is looking at further expansions in
($1 = €0.75)
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