PTT Chemical Plc. to expand MEG production

22-May-06

Thailand's largest olefins maker, PTT Chemical Plc. is to scrap a plan to build its second plant to expand production of mono ethylene glycol (MEG), with a capacity of 300,000 tons. This change has been triggered by rising construction costs. The company will expand capacity instead, at a plant still under construction. PTTCH, 50% owned by state-run PTT is building a plant to produce 300,000 tpa of MEG, due to be completed in July. It would cost $58 million to raise the capacity of the plant under construction by another 95,000 tpa and it should begin commercial operations in the first quarter of 2008. Scrapping plans for a second would cut its 5-year investment budget to $1.03 billion from $1.1 billion. PTTCH was created in late 2005 by the merger of two PTT affiliates -- Thai Olefins and National Petrochemical-- with a combined olefins capacity of 1.5 million tpa.