Philippines cracker – revival of an epic saga

Business, Olefins, Philippines, Polyolefins, Projects

By Malini Hariharan

Some projects never die.

JG Summit has been planning a cracker since 1995 but has always had problems in securing funding. The project was revived in 2005 even as questions were raised about its viability.

It would help JG Summit secure feedstock for its polyethylene and polypropylene plants, but how would it compete with larger well-established players in Singapore and Thailand, especially after the implementation of the Asean FTA from 1 January 2010 when import tariffs would fall to zero.

The market meltdown in the second half of 2008 had pushed the project to the back burner. But with economic recovery the project has once again reappeared.

JG Summit says that it is close to receiving funding from the Export-Import Bank of Korea for a 320,000 tonnes/year cracke at Bataangas.

Lance Gokongwei, president of JG Summit Holdings told reporters in Manila this week that the company was pushing ahead with the estimated $731m project. “We expect to operate the plant in 2013,” he said.

Gokongwei said JG Summit had already signed an agreement with Lumus for technology and site and design development would start in March 2010.

“If the financing package from the Korea Eximbank is completed by May to August next year then the project is a sure go,” Gokongwei said.

“If we can’t get the financing, we will have to assess. The fallback is we wait for the right time,” he added.

That sounds familiar.

PREVIOUS POST

China PO demand will continue to expand but slower than capacity

22/12/2009

By John Richardson China’s capacity to produce polyethylene and polypropyl...

Learn more
NEXT POST

The latest on Mab Ta Phut

24/12/2009

By Malini Hariharan There is some good news for chemical companies affected by t...

Learn more
More posts
Global polyethylene demand in 2020 could fall by 3.3m tonnes, cost curve analysis turned on its head
28/02/2020

By John Richardson NOTHING that’s happened over the last few days that should surprise anyone who ...

Read
Global PVC demand could fall by 1.1m tonnes as coronavirus crisis becomes global
26/02/2020

By John Richardson YOU CANNOT stimulate economic activity when factories and offices need to be shut...

Read
China polyethylene imports could be 3m tonnes lower as economy seizes up
24/02/2020

By John Richardson IT IS TIME for crisis planning, I am afraid, as a result of the World Health Orga...

Read
Rescue of major conglomerate, struggling SMEs raise risks for China and global economies
20/02/2020

The most important issue here remains the human cost of the coronavirus outbreak. My thoughts and ho...

Read
Global polyethylene demand in 2020 at risk of 2.4m decline because of coronavirus
19/02/2020

By John Richardson I AM a bit confused this morning following some excitement about the Chinese deci...

Read
Coronavirus: Global polypropylene demand in 2020 could fall by 2.6m tonnes over last year
17/02/2020

By John Richardson SOME GOOD news might be that official Chinese state media announced that the numb...

Read
Coronavirus threatens 2.9m tonnes of China PP demand as uncertainties increase
14/02/2020

By John Richardson THE RUMOURS travelled around my contacts, and I am sure many of your contacts, fo...

Read
More than 3m tonnes of Chinese polyethylene demand at risk from coronavirus
08/02/2020

    By John Richardson THE GOOD news is that medical experts believe the novel coronavirus...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more