* New refinery will triple capacity to 360,000 bpd from
* Aims to conclude details on financing, partners early 2015
(Adds comments, details)
By Pisit Changplayngam and Khettiya Jittapong
BANGKOK, Aug 13 Thailand's PTT Global Chemical
Pcl said on Wednesday it is seeking a partner to
expand the crude processing capacity of its planned joint
petrochemical project with Indonesian state oil and gas firm
PTT Global is planning to triple the crude processing
capacity of the project to 360,000 barrels a day (bpd), which
would boost the estimated investment in the complex to as much
as $8 billion, chief executive Bowon Vongsinudom told reporters.
PTT Global's initial plans with Pertamina had called for an
investment of $5 billion in the petrochemical complex at
Balongan on Java island.
The investment is part of PTT Group's plan to boost its
presence in Southeast Asia as domestic demand slows after
several months of political unrest that weakened the economy.
"The estimated investment is expected to rise to $7
billion-8 billion. It's huge money. PTTGC will focus on
petrochemicals and we need to seek a partner to strengthen the
refining part," Bowon said, adding the refinery will help supply
feedstock to the petrochemical plant.
The company is studying details on how to finance the
project and potential partners, a process it expects to conclude
in early 2015. It aims to begin operations at the Indonesia
complex in 2020, delayed from a previous completion target in
2018, Bowon said.
The complex will include a 1 million tonne olefins plant and
a downstream polymer facility, and will supply the Indonesian
market during initial stage of operations, the Thai firm said in
"Having a production base in Indonesia will provide us an
opportunity to expand into other Southeast Asian markets," the
PTT Global, 49 percent owned by the country's top energy
firm PTT Pcl, signed separate deals in 2013 with
Pertamina and China's Sinochem Group to jointly develop
petrochemical businesses in the two countries.
PTT Global produces ethylene and propylene, together called
olefins, which are petrochemicals used to make plastic pellets
used as raw materials in the packaging industry.
It has an olefins and aromatics petrochemical capacity of
8.75 million tonnes a year and a crude oil refining capacity of
280,000 bpd. Its five-year capital expenditure programme calls
for investment of $4.5 billion over 2014 to 2018.
At 0830 GMT, PTT Global shares were up 1.16 percent, in line
with a 1.1 percent gain of the overall market.
(Writing by Khettiya Jittapong; Editing by Tom Hogue)