Petroleum Authority of Thailand (PTT) is in talks with potential partners to invest in two intermediate petrochemical projects to produce vinyl acetate monomer (VAM) and acrylonitrile (ACN). Discussions are on with a USA based company to jointly invest in the production of VAM and with a Japanese firm to produce ACN. As competition from Siam Cement and TPI intensifies, it will become essential to expand production into new categories for the state-owned oil company to fully integrate its businesses.
An American company is keen to invest in VAM production in Thailand or Singapore, as currently, demand in ASEAN countries for VAM is met by imports as it is not produced in the region. PTT could be a potential partner as the company could ensure supply of ethylene for the project, which should come onstream by the end of this year.
PTT is also interested in the ACN project in which Asahi of Japan and NPC were approached to take up 51% and 39% stakes respectively, with the remaining 10% held by a number of trading firms. Currently, the Indorama Group is the only local ACN producer. Asahi's planned holding in the ACN project cannot be confirmed unless a plan materializes for NPC to acquire shares in Bangkok Polyethylene Plc, a subsidiary of Bangkok Bank. NPC's current 30,000-40,000 tpa propylene production barely meets customer requirement and will not be available for the new project- hence NPC is reluctant to join the ACN project
22-Aug-06 
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