Thailand’s PTT delays Malaysia investment

RefineryThailand’s largest petrochemical maker, PTT Global Chemical Pcl (PTTGC), said on April 1 it planned to make a decision on a petrochemical investment plan for Malaysia in late 2013, delayed from the middle of the year, Reuters reported.

The delay was because Malaysia needed more time to seek a partner for the downstream petrochemical business, while PTTGC is keen on the mid-stream project, PTTGC Chief Executive Anon Sirisaengtaksin told reporters.

PTTGC has been considering the possibility of jointly investing in that project with Malaysian state-run oil company Petronas.

The Thai company has also signed a partnership agreement with Indonesia’s state-owned oil and gas firm, Pertamina, to build a petrochemical complex in Indonesia with an estimated cost of $4-5 billion.

Pertamina owns and operates 5 refineries throughout Indonesia. It is ranked the 5th largest in Asia so it has large potential to integrate its refinery and petrochemical businesses. With these advantages, Pertamina is determined to be a major player in Indonesia and the region.

This partnership project aims to build a 1-million-tonnes naphtha cracker as well as downstream polymer units on Java to serve rising demand for petrochemical products in Indonesia and consequently, reduce dependency of imported products.