JG Summit Olefins Corp’s planned naphtha cracker in Batangas is estimated to cost US$100 mln more than previous estimates. The plant, on which construction is to commence in January will now cost US$600 mln as per the Board of Investments. About two weeks ago, the project was estimated to cost US$500 mln. The sudden rise in cost has not been explained. JG Summit Olefins is applying for registration with the BOI on a pioneer status as a new producer of polymer-grade ethylene and propylene, pyrolysis gas and by products such as fuel gas, fuel oil, and acid gas. The 925,537 tpa plant will be located adjacent to Gokongwei-owned polyethylene and polypropylene plants.
In 2005, the group registered a similar project under JG Summit Petrochemical Corp. at an estimated cost of P25.6 billion. Unable to push the plan through, JG Summit formed another subsidiary, JG Summit Olefins Corp., which in May 2008, received approval of the BOI for the naphtha cracker at a cost of P34.38 billion.