The SET-listed PTT Global Chemical Plc (PTTGC), Thailand's largest petrochemical producer, is in talks with PT Pertamina (Persero) about jointly investing in a US$5-billion integrated oil refinery and chemical complex.
Mr Anon said plastics demand is growing sharply in Indonesia.
PTTGC, majority-owned by the energy giant PTT Plc, has been shortlisted as a potential investment partner of Indonesia's state-owned oil and gas producer for the proposed facility on Java, said chief executive Anon Sirisaengtaksin.
"Three companies have proposed feasibility studies for the project. The government will announce the winner next April," he told the Bangkok Post yesterday.
Indonesia has a number of potential investment areas, said Mr Anon, adding that an exact location on the island for this project has not been decided.
"If the company is chosen as the investment partner, then we'll expect to hold a significant equity stake in the project," he said.
Mr Anon said Indonesia has strong petrochemical and plastics demand on the back of strong economic growth and the large population of 242 million.
Mr Anon said plastics demand has particularly been growing sharply.
The country's petrochemical production falls short of demand, and most related products are imported, he said.
PTT Exploration and Production Plc acquired a 15% stake in a consortium led by Pertamina to develop Indonesia's massive East Natuna gas block after Malaysia's Petronas pulled out of the consortium earlier this year.
Pertamina has a 35% stake in the consortium, while other partners are Exxon Mobil Corporation and Total SA.
The company is seeking several partners to help it develop the block, which has an estimated 46 trillion cubic feet of natural gas, the biggest gas reserves in Asia.
But the gas has a high level of carbon dioxide, requiring a large investment and sophisticated technology to remove.
PTTGC resulted from last year's merger of PTT Chemical Plc and PTT Aromatics and Refining Plc.
It has earmarked $4.5 billion for a business expansion from 2013-17.
The company now has cash on hand of $1.5 billion and recently issued $1 billion worth of debentures to help finance the five-year plan.
It projects revenue will grow from an estimated 563 billion baht this year to 600 billion in 2017 and 800 billion in 2022.
Mr Anon expects the overall petrochemical industry will see a turnaround next year on the back of a global economic recovery.
He said while the European and US economies are slowing down, Southeast Asia and China will be the major drivers of global economic growth.
Shares of PTTGC closed yesterday on the Stock Exchange of Thailand at 63 baht, down 25 satang, in trade worth 382 million baht.
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About the author
Writer: Yuthana PraiwanPosition: Business Reporter
Article source: http://www.thethailandlinks.com/2012/11/29/pttgc-in-talks-with-pertamina/
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