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Thailand:Thaioil likely to up paraxylene production |
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2005-2-16
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Largest refinery of the country, Thai Oil Plc (Thaioil) and a subsidiary of PTT Plc, says it is considering doubling the output of aromatics products, mainly paraxylene to 800,000 tonnes per year.
Th present capacity is 407,000 tons and the company has embarked on its plans anticipating higher demand.
Notably, two of its competitors - The Aromatics Thailand Plc and Indorama Group were going ahead with plans to fully increase capacity
According to Thaioil managing director Piti Yimprasert, the investment budget, expansion model and technical details are to be concluded in March or April before approval is sought from the company''s board of directors, .
After Thaioil acquired all of the shares of Thai Paraxylene Co, its petrochemical subsidiary, from PTT last October, the feedstocks procedure of the company has been changed. Mixed xylene, a byproduct of Thaioil''s crude cracking process, has since been shipped in its entirety to Thai Paraxylene''s plant instead of exporting a portion as before. Earlier, Mitsubishi Oil Corp, a shareholder of Thai Paraxylene, was a main supplier of Thai Paraxylene''s demand for mixed xylene.
The change in the feedstock supply stream was behind the expansion plan for Thai Paraxylene, which will see capacity raised to 349,000 tonnes per year, up from 289,000 tonnes earlier.
An allocation of US$40 million was done by Thaioil earlier to expand its capacity to 407,000 tonnes per year to serve expected hefty demand over the next few years.
Expansion plan had to be revised to 800,000 tonnes said Mr Prasert after the company found that aromatics products demand would grow significantly.
"Since demand still far exceeds overall capacity, the company sees fit to raise its capacity and will finish it in 2006 to coincide with the next peak of the petrochemical business," said Mr Piti.
Thaioil will invest $100 million to enhance its refining capacity by 50,000 barrels per day to 270,000 bpd by expanding a crude distillation. While invitation of bids was still in the planning stages, construction is likely to begin this year during the third quarter this year.
Petroleum and petrochemical products, electricity generation and marine oil transport would be the key focus areas for Thaioil this year, concluded Mr Piti. |
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