Thailand's GC commits $903 million to boost petrochem biz, another project for Samsung Engineering
By Chalermlapvoraboon Valaiporn
BANGKOK, NNA - PTT Global Chemical Public Co. (GC) plans to sink another $903 million (27 billion baht) into the Eastern Economic Corridor (EEC) in the next five years, after having spent more than $3.5 billion on a mega petrochemical project there.
The largest petrochemical and refining company in Thailand, GC is boosting production and long-term competitiveness to drive growth. Last week, it awarded a $125 million contract to Samsung Engineering to revamp and enhance facilities at an olefin plant.
Called the Olefins 2 Modification Project (OMP), it aims to increase the output of propane, a raw material for propylene production. Besides revamping the existing facilities, Samsung Engineering will set up a distillation tower.
Expected to operate commercially in the first quarter of 2023, the project will be carried out jointly by Samsung Engineering Co. and Samsung Engineering (Thailand) Co..
The total investment for this project will come up to about $165 million (5,198 million baht), said Kongkrapan Intarajang, CEO of GC, adding that there are plans to inject another $903 million (27 billion baht) into the EEC within the next five years.
In a media statement, he said, “The Olefins 2 Modification Project will allow the company to increase propane usage as feedstock and support our strategy to enhance feedstock flexibility and long-term competitiveness, while adding value through downstream business."
The project is on top of two other projects that Samsung Engineering is currently implementing for GC - the Olefins Reconfiguration and the Propylene Oxide (PO) projects, said Sungan Choi, president and CEO of Samsung Engineering.
He said, "The awarding of the GC Olefins 2 Modification Project is not only a result of our project execution capabilities and proven track record in Thailand, but further shows the trust GC has in us to deliver projects efficiently."
The project is located in Map Ta Phut in Rayong province, which is part of the Eastern Economic Corridor off the coast of the Gulf of Thailand. The government is developing the special zone covering three eastern provinces as a key economic hub in ASEAN.