May 15, 2015 / 11:10 AM / 5 years ago

Thai PTT Global aims to sign $5.7 bln U.S. olefins project in H2

BANGKOK, May 15 (Reuters) - Thailand’s PTT Global Chemical PCL said it aims to sign in the second half of 2015 a deal with Japan’s Marubeni Corp and a new partner to jointly invest in a $5.7 billion petrochemical complex in the United States.

Thailand’s largest petrochemical maker will hold a more than 51 percent stake in the project, Patiparn Sukorndhaman, executive vice president for finance told reporters. PTT is seeking a third partner to jointly invest in the project in addition to Marubeni, Sukorndhaman added.

“Marubeni specialises in trading business. Having Marubeni as a partner will help us to penetrate the North America market,” Patiparn said, adding PTT is looking to select one of five potential partners that are interested in the project.

The stakes that would be held by Marubeni and any third partner are still under negotiation.

PTT Global, petrochemical flagship of state oil and gas company PTT PCL, has selected Ohio as the site of a one-million-tonne olefin cracker so it can use ethane from the Marcellus shale as the feedstock, it said in a statement.

The company is also seeking a partner to jointly invest in a propylene oxide project in Thailand with an estimated cost of about $1 billion and capacity of 200,000 tonnes a year, Patiparn said.

PTT Global, one of the world’s top 10 ethylene makers, has set an investment budget of $4.5 billion for 2015-2019.

It aims to boost revenue contribution from olefins and plastic pellets to 30-35 percent over the next five to seven year from 25 percent now, Patiparn said.

PTT Global also joined with Indonesia’s Pertamina to build a 1.5 million tonne olefin cracker with estimated cost of up to $5 billion.

PTT Global has a petrochemical capacity of 8.75 million tonnes a year and runs a refinery with a crude and condensate refining capacity of 280,000 barrels per day.

Reporting by Khettiya Jittapong and Manunphattr Dhanananphorn; Editing by Tom Hogue

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