PTT proposes giant petro complex

PTT Public Company Limited (PTT) late last week met Binh Dinh province leaders to propose this complex for the Nhon Hoi Economic Zone. According to the Thai firm, the complex would have total refining capacity of 660,000 barrels per day, or 33.6 million tonnes of crude oil per year. If the project is approved, it would be one of the largest oil refinery and petrochemical complexes in Asia.
 
Initially, this project was proposed by a Thailand’s STFE Company, before it invited PTT to jump into the project.
 
“After the initial study, PTT said this project would not be effective if having total refining capacity of 10 million tonnes. Therefore, it proposed to build an oil refinery and petrochemical complex with such a large capacity,” said Man Ngoc Ly, director of Binh Dinh Economic Zone Management Authority.
 
He said the province had already approved this investment proposal in principle. However, PTT will only get investment project for this project if it is approved by the government, because Binh Dinh is not zoned by the government to build an oil refinery and petrochemical project.
 
“In the view of PTT, Binh Dinh is appropriate to develop oil refinery and petrochemical industry,” said Ly, adding that the investor would submit a project feasibility study in December.
 
Ly said PTT affirmed it would be responsible for one-third of total investment capital, STFE Company another third, with the rest to be arranged by other Vietnamese partners including Petrolimex, PetroVietnam, Khang Thong Group and Military Petroleum Corporation.
 
Under PTT’s schedule, the investors will start constructing this complex in 2016. The commercial operation is expected to start in 2019.
 
“We support this project because it could significantly contribute to the country’s economy. But, we need investors to further prove its feasibility,” said Ly.
 
PTT, a Bangkok stock exchange-listed company, so far has invested in a total integration petrochemical business through its eight subsidiaries, starting from upstream to intermediate and polymers both olefin chain and aromatic chain.
 
PTT Group not only becomes the leader player in the country, but also attracts several world leading companies such as LyondellBasell from the US, Asahi Kasei Chemical Corporation from Japan, and Sime Darby Plantation from Malaysia to be the strategic partners in petrochemical business.

In terms of refining business, the firm has four subsidiaries with total refining capacity of 1,040,000 barrels per day. Those include Thai Oil Company Limited, PTT Global Chemical Public Company Limited, Star Petroleum Refining Company Limited and Bangchak Petroleum Plc.