Thailand's PTT Global Chemical plans capex of US$4.5 bln uptil 2019

23-Feb-15

Thailand's PTT Global Chemical PCL plans to spend US$4.5 bln from 2015 to 2019. Majority of the capex will be on petrochemical complex in Indonesia and another project in the United States as part of its foreign expansion, as per Reuters. Half the funding will come from cash flow and the rest from borrowing, as per the company's executive VP for finance. PTT Global has joined Indonesia's Pertamina to build the 1.5 mln ton olefin cracker at an estimated investment of US$4 -5 bln. The company is studying the possibility of investing in a 1 mln ton olefin project in the United States using ethane from shale gas as feedstock, at an estimated investment of US$5 bln. PTT Global, a flagship in the petrochemical business of PTT PCL, expects to make a decision in March or April about the location of the olefin plant in the United States. The company also aims to conclude in 2015, a plan to build a propylene oxide plant with capacity of 200,000 tpa and estimated cost of US$1 bln. For 2015, PTT Global planned to invest US$650 million baht. Three projects due to be completed this year include Phenol 2, TOC Glycol and Aromatics 2, which analysts expect to lift the company's total capacity by 665,000 tpa (7.5% of current capacity).