Thailand’s PTT to invest $5b for Indonesia, US projects

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PTT Global Chemical Plc, a petrochemical arm of Thailand based energy group PTT Plc, is planning to invest more than $5 billion in an olefin production plant in Indonesia and a shale gas project in the United States.

President and chief executive Supattanapong Punmeechaow said that the company is in talk with Pertamina, an Indonesian state-owned oil and natural gas corporation, for a joint venture, to set up an olefin and by-products production plant with total production capacity of 1.5 million tonnes a year, in Indonesia.

It is also studying a possibility to establish a shale gas-based petrochemical plant in Marcellus town in order to serve the demand in the United States. Both projects are expected to finalise within this year.

Half of the funding will come from its cashflow and the other from borrowing, another executive told Reuters.

Also read: PTT to sell 15% shares in Bangchak to state fund

Last year PTTGC Netherlands, a wholly-owned subsidiary of PTTGC, has acquired Perstorp’s 34 per cent stake in French chemical maker Vencorex for an undisclosed amount.

Supattanapong cited that the company is looking for a chance to acquire or set up a propylene oxide production plant with a production capacity of 200,000 tonnes a year. This would help secure the feedstock for downstream polyurethane production.

It has continued boosting production capacity for several products in Thailand this year. This includes increasing Phenol by 250,000 tonnes and Acetone by 155,000 tonnes in the Phenol II project as well as Paraxylene by 115,000 tonnes, Benzene by 35,000 tonnes and Orthoxylene by 20,000 tonnes in the Aromatics II project.

Also read: Thailand’s PTT plans $7.8b investment

PTTGC reported the net loss of 4.9 billion baht in the fourth quarter last year, a huge slump from the net profit of 7.6 billion baht in the previous quarter, as a result of stock loss and loss from aromatics business. The overall net profit in 2014 was 15 billion baht, plunging 54.8 per cent year on year, slightly worse than it projected.

Asia Plus Securities’ report states that PTTGC should be able to maintain its earning but the profit will revive significantly by 97.8 per cent in 2015 thanks to high olefins spread.

PTTGC stock price was 58 baht a piece, up 50 satang from its open today.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.