Philippines Finally Clinches $800 Million Naphtha Cracker Project

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Researched by Industrial Info Resources (Sugar Land, Texas) -- Philippines JG Summit Olefins is planning to invest $800 million in the construction of a naphtha cracker at Batangas City near JG Petrochemical Corporation's existing polymer plant, which was launched in 1998. The country's Board of Investments (BoI) envisages the proposed plant completing the full integration of the petrochemical industry thus cutting down dependence on imported ethylene and propylene feedstock for existing polymer plants. It sees the new cracker benefiting midstream industries and downstream petrochemical industries. The BoI has offered fiscal incentives to the project including tax breaks of up to six years.

The project is covered in the 2008 investment priorities (IPP) list for 2008 under the retention, expansion and diversification (RED) program. This covers projects of existing investors that are either considered as global players or are engaged in the strategic industries being encouraged by the program. A company executive said that potential investors in the project, including international companies, were already talking to the company.

Production capacity of the new plant will cover 320,000 tons per year ethylene, 190,000 tons per year propylene and 270,000 tons of gas. Other by products such as methane, pyrolysis fuel oil and acid gases will also be produced. Completion of the plant is scheduled for January 2012. The local feed for the polymer plants will mean that the manufacture all types of packaging. A wide range of consumer and commercial goods and components will benefit in terms of a cost effective supply chain. The new project plan submitted to the BoI is $220 million more than the original plan offered in 2005. For related news see September 20, 2004 - JG Summit Finally to Fill Naphtha Cracking Gap for Philippine Polys Industry.

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