Thailand: PTT optimises ethane capacity, helps polymer sector

Thailand: PTT optimises ethane capacity, helps polymer sector

PTT LNG Co Ltd (PTTLNG) a subsidiary of the country's oil and gas
conglomerate PTT Plc, plans to optimise its gas separation plants to produce
more ethane and feed rising demand in polymer industries, according to
managing director Chockchai Thanamatee.

He said the company plans to increase its ethane production capacity of gas
separation unit 1 to 500,000 tonnes per year, up from 330,000 tonnes per
year. This will increase total ethane production from its six gas separation
plants from the 1.83 million tonnes per year to 2 million tonnes.

The move is a part of the company's strategy to optimise gas separation
plants, which started with conducting a feasibility study to seek ways to
increase ethane production a few years ago.

Ethane is isolated on an industrial scale from natural gas and as a
petrochemical by-product of petroleum refining. Its chief use is as
feedstock for ethylene production.

Mr Chockchai said the increased ethane production is expected to supply PTT
Global Chemical Plc, a petrochemical arm of national oil and gas
conglomerate PTT Plc, which aims to use ethane as a major raw material for
other downstream plastic products.

He said the downstream products will help increase added value to allow the
group to have greater profit margins.

PTT is a pioneer company that started developing gas separation plants over
30 years ago to utilise gas from the Gulf of Thailand in order to cut energy
import bills.

The company constructed the first unit, with a processing capacity of 350
million cubic feet per day (MMCFD) in 1982. Later, the demand for liquefied
petroleum gas increased so the cabinet approved PTT to construct five more
units. The sixth unit is the largest one, beginning operations in 2010 with
a production capacity of 800MMSCFD.

Mr Chockchai said the project to increase the ethane production capacity was
unlikely to require a big tranche of investment as the company plans to
spend only 21.4 million baht to upgrade the gas separation unit.

PTTLNG expects total natural gas demand will rise to 16.5 million tonnes by
2021 and 19 million tonnes in 2023.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1241806/ptt-optimises-ethane-capaci
ty-helps-polymer-sector

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com