PTT group plans petrochemical project in Vietnam

BANGKOK, May 20 (TNA) - A subsidiary of PTT Public Company Limited (PTT), Thailand's largest petroleum firm, is planning a promising petrochemical project in Vietnam. Sukrit Surabotsopon, Senior Executive Vice President of PTT’s Petrochemicals & Refining Business, told reporters on Monday he believes that PTT's joint venture with international business partners to build a refinery for petrochemical production in Vietnam's Binh Dinh province should be materialized over the next 5-6 years. Sukrit said that the project, worth 27-28 billion US dollars, will meet soaring demand for petrochemicals in Vietnam, which is foreseen to reach about 5 million tons by 2020, and steadily growing demand for petrochemicals in other Asian areas. Initially, Sukrit acknowledged, the new refinery in Vietnam, if its construction is complete, is targeted to have its daily production capacity of some 660,000 barrels and the yearly petrochemical production capacity of 10.2 million tons, including 650,000 tons of olefins and 370,000 tons of aromatics. The PTT senior executive revealed that 60 per cent of the new overseas investment plan will be financed by loans and the rest will come from PTT capitals, and that PTT, Vietnam and partners will equally pay for one-third of the investment, with the partners to, probably, act as suppliers, financiers and technology owners as well. Besides, the PTT senior executive pointed out, the new mega investment project will considerably cut costs, as imported crude oil from the Middle East now costs one US dollar per barrel for transport while imported naphtha, a raw material of petrochemicals, costs 3 US dollars per barrel for transport. (TNA)