Price and market trends: JG Summit delays Phillippines cracker

28 October 2013 00:00  [Source: ICB]

The Philippines’ JG Summit Petrochemical has further delayed the start-up of its new naphtha cracker in Batangas to next year from October or November 2013.

“We have delayed the cracker start-up to March 2014 because of minor issues in construction,” a company official said.

The cracker was originally scheduled to start operations in July or August this year, the source said.

The cracker – the Philippines’ first – is expected to produce 320,000 tonnes/year of ethylene and 190,000 tonnes/year of propylene. It will supply feedstocks to JG Summit’s 210,000 tonne/year polyethylene (PE) plant and 190,000 tonne/year polypropylene (PP) plant in Batangas.

The PE plant is currently shut for expansion, while the PP plant is also off line for upgrading works, according to the source.

“We are still in the process of expanding the PE capacity, which will be completed by end November,” the official said.

“We are not interested to buy [feedstock ethylene] because PE is weak and we’ll wait until the cracker starts up,” he said.

Ethylene spot offers were at $1,450-1,470/tonne (€1,073-1,088/tonne) CFR (cost and freight) SE (southeast) Asia, for cargoes arriving in the first half of November from the Middle East or north Asia, according to an Indonesia based buyer.

Buying ideas varied at $1,350/tonne CFR SE Asia to the low $1,400s/tonne CFR SE Asia.

By: Helen Lee
+65 6780 4359

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