APIC ’12: Indorama explores US cracker with multiple partners

18 May 2012 08:33  [Source: ICIS news]

KUALA LUMPUR (ICIS)--Thailand-based Indorama Ventures (IVL) is exploring an investment in a US-based cracker with multiple partners, a senior executive said on Friday.

“We are still working on it, evaluating ethylene pricing and investment opportunities with various partners. We will consider all possible situations,” said D.K. Agarwal, CEO of Indorama Polymers, an IVL subsidiary.

Agarwal spoke to ICIS on the sidelines of the Asia Petrochemical Industry Conference (APIC) in Kuala Lumpur.

A world-scale ethane cracker would have around 1.5m tonnes/year of ethylene capacity, he noted.

“But we require only 300,000 tonnes/year of ethylene for our US operations in MEG [monoethylene glycol] and EO [ethylene oxide],” said Agarwal.

The figure includes IVL’s $795m buyout of US EO/EG producer Old World Industries on 1 April, said Agarwal.

The company also still needs to buy 450,000 tonnes/year of MEG in North America, he added.

On 29 February, Indorama announced at its annual investor meeting that it already completed a pre-feasibility study for a 1.3m tonne/year cracker in the US with an undisclosed partner, and expects to complete a full feasibility study by 2013.

By: Joseph Chang
+1 713 525 2653

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