Thailand's Petrochemical Industry Faces Strains

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Researched by Industrial Info Resources (Sugar Land, Texas)--With the recent conflict in the Middle East leading to the closure of Strait of Hormuz, Thailand's petrochemical industry has shifted from prospective growth to a heavy operational burden. The impact of the current crisis splits the industry between plants that are natural gas-based and those that rely on imported naphtha.

SCG Chemical's Rayong Olefins (ROC) that produces 900,000 million tons per year (MT/yr) ethylene, 450,000 MT/yr propylene, 150,000 MT/yr benzene and 70,000 MT/yr toluene has officially suspended operations and declared force majeure due to a shortfall in naphtha and propane feedstock imported via the Strait of Hormuz.

The strategic decision to halt operation at ROC was to protect the larger Map Ta Phut Olefins (MOC) complex. SCG Chemical is diverting their available feedstocks to MOC to maintain the production of 1.2M MT/yr ethylene and 850,000 MT/yr propylene. MOC remains active at 80% reduced utilization rate, but under high risk if disruptions proceed over the next two months.

While many petrochemical plants are reducing rate due to feedstock disruption, PTT Global Chemical (PTTGC) is currently operating at full capacity as it relies heavily on domestic ethane supplied by PTT from the Gulf of Thailand. PTTGC positioned itself as the most resilient player during this crisis.

Thailand's industrial giants are not sitting idle, they are driving survival strategies to prevent industrial collapse.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Plant Database can click here for the related plant profiles.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).