Thai Oil to set up refineries in Indonesia and Myanmar

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OilRefineryThai Oil Plc, Thailand’s largest refiner and one of the blue chips at the Stock Exchange of Thailand, is looking to expand into Indonesia and Myanmar by joining its parent company PTT Plc to add new refining capacity in the two neighbouring countries.

The company’s president and chief executive Veerasak Kositpaisal said Indonesia’s Pertamina had approached PTT to assist the Indonesian national company in developing additional capacity by either building a new refinery or expanding existing units.

At present, Pertamina has six refineries in operation with combined capacity of 1.2 million barrels per day (bpd) compared with Thailand’s overall refining output of 1.1 million bpd. Indonesia as a whole still imports a further 500,000 bpd of oil, and Pertamina intends to increase its capacity by the same amount by 2020.

“Pertamina is keen to have a partner for this project. Details of the plan are expected to be finalised by year-end,” Veerasak said.

So far, Thai Oil has signed agreements with Pertamina to add value to the latter’s production of slack wax on Java by including paraffin wax for use in the manufacture of batik, particle boards, furniture and tyres. The project, worth an estimated $70-80 million for annual capacity of 70,000 tonnes, would be developed by a joint venture between Thai Oil and Pertamina to be set up this year, Veerasak said.

Meanwhile, Thai Oil has joined hands with PTT to submit a proposal to Myanmar Petrochemical Enterprise (MPE) to upgrade its Thanlyin refinery near Yangon.

The alliance has been on the shortlist, with the result likely to be announced in the fourth quarter. The refinery upgrade is scheduled for 2016, with initial capacity of 15,000 bpd. Through a partnership with MPE, a long-term plan is for developing refining and petrochemical capacity to serve Myanmar’s growing domestic consumption, Veerasak said.

“Myanmar is our target country for expanding our investments abroad. The company has worked well with officials there, and they are waiting for us to submit future investment plans,” he added.

Myanmar consumes only 70,000 bpd compared with Thailand’s 850,000 bpd even though the two countries are not far apart in population size.

At home in Thailand, Thai Oil will spend $380 million to build two cogeneration small power producer projects with combined capacity of 239 megawatts. The plants will be operational in 2016.

Its subsidiary Thai Paraxylene Co has formed a joint venture with Japan’s Mitsui & Co to develop a linear alkyl benzene facility with annual capacity of 100,000 tonnes at a cost of 12 billion baht ($365 million).

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Reading Time: 2 minutes

Thai Oil Plc, Thailand’s largest refiner and one of the blue chips at the Stock Exchange of Thailand, is looking to expand into Indonesia and Myanmar by joining its parent company PTT Plc to add new refining capacity in the two neighbouring countries.

Reading Time: 2 minutes

OilRefineryThai Oil Plc, Thailand’s largest refiner and one of the blue chips at the Stock Exchange of Thailand, is looking to expand into Indonesia and Myanmar by joining its parent company PTT Plc to add new refining capacity in the two neighbouring countries.

The company’s president and chief executive Veerasak Kositpaisal said Indonesia’s Pertamina had approached PTT to assist the Indonesian national company in developing additional capacity by either building a new refinery or expanding existing units.

At present, Pertamina has six refineries in operation with combined capacity of 1.2 million barrels per day (bpd) compared with Thailand’s overall refining output of 1.1 million bpd. Indonesia as a whole still imports a further 500,000 bpd of oil, and Pertamina intends to increase its capacity by the same amount by 2020.

“Pertamina is keen to have a partner for this project. Details of the plan are expected to be finalised by year-end,” Veerasak said.

So far, Thai Oil has signed agreements with Pertamina to add value to the latter’s production of slack wax on Java by including paraffin wax for use in the manufacture of batik, particle boards, furniture and tyres. The project, worth an estimated $70-80 million for annual capacity of 70,000 tonnes, would be developed by a joint venture between Thai Oil and Pertamina to be set up this year, Veerasak said.

Meanwhile, Thai Oil has joined hands with PTT to submit a proposal to Myanmar Petrochemical Enterprise (MPE) to upgrade its Thanlyin refinery near Yangon.

The alliance has been on the shortlist, with the result likely to be announced in the fourth quarter. The refinery upgrade is scheduled for 2016, with initial capacity of 15,000 bpd. Through a partnership with MPE, a long-term plan is for developing refining and petrochemical capacity to serve Myanmar’s growing domestic consumption, Veerasak said.

“Myanmar is our target country for expanding our investments abroad. The company has worked well with officials there, and they are waiting for us to submit future investment plans,” he added.

Myanmar consumes only 70,000 bpd compared with Thailand’s 850,000 bpd even though the two countries are not far apart in population size.

At home in Thailand, Thai Oil will spend $380 million to build two cogeneration small power producer projects with combined capacity of 239 megawatts. The plants will be operational in 2016.

Its subsidiary Thai Paraxylene Co has formed a joint venture with Japan’s Mitsui & Co to develop a linear alkyl benzene facility with annual capacity of 100,000 tonnes at a cost of 12 billion baht ($365 million).

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