Thai Olefins lets contracts to expand Rayong olefins complex

By an OGJ Online Correspondent
Bangkok, Feb. 1 -- Thai Olefins Co. (TOC) awarded three contracts totaling $126 million to US-Japanese groups including Kellogg Brown & Root Inc., Chiyoda Corp., and Halliburton Co. to expand its olefins complex.

TOC, the operator of Thailand's second olefins complex, earlier secured $490 million to finance a $144 million gas-based ethylene production train.

The three contracts are: an $80 million supply contract with Kellogg Brown & Root and Chiyoda, a $37 million construction deal with Halliburton Energy Service and Chiyoda, and a $9 million process license contract with Kellogg Brown & Root.

The expansion will boost ethylene production capacity at TOC facilities in Rayong, 220 km southeast of Bangkok, by 300,000 tonnes/year to 685,000 tonnes/year, coinciding with an upward cycle for petrochemical market projected by TOC.

Construction of the unit is due to begin by yearend and be completed by late 2004. It will increase Thailand's ethylene production to 2.2 million tonnes/year.

Unlike an existing 385,000-tonne/year ethylene plant which uses naphtha as feedstock, the new unit will crack ethane, separated from indigenous natural gas, into ethylene.

TOC, owned 63.3% by the partially privatized PTT Plc, does not plan to increase its propylene capacity of 190,000 tonnes/year.

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