Upon completion, RRC's refining and other item capacity will increase from 145,000 barrels per day at present to 210,000, while ATC's aromatics capacity will rise from 1.1 million tonnes a year to 2.14 million, said Prasert Bunsumpun, president of PTT Plc, the largest shareholder in both companies.

"Together, this joint investment boosts their synergy in terms of competitiveness and establishes a link between the petroleum and petrochemical industries that will add value to their products and reduce business risk," Prasert said during a ceremony laying the foundation stone for the complex.

RRC's acting president, Chainoi Puankosoom, said that in addition to its $551-million reforming refinery, RRC planned to build a $135-million oil-upgrading refinery that would add value to by-products from the reforming refinery. The by-products include condensate residue and light naphtha, which are raw materials used in the production of petrol, diesel, aviation fuel and kerosene.

The upgrading refinery will raise RRC's production standards for petrol and diesel to Euro IV standards, the latest ones in the world market and which from 2010 will govern the manufacture of products sold in Thailand.

"This will boost RRC's revenues from Bt150 billion in 2005 to Bt210 billion in 2008," said Chainoi.

Currently, ATC can produce 363,000 metric tonnes of benzene and 616,000 metric tonnes of paraxylene a year. After the new complex starts up, annual production capacity will increase to 830,000 metric tonnes and 1.11 million, respectively.

ATC president Permsak Shevawattananon said the new complex would provide his company with a steady supply of reformate, the raw material used in the production of aromatics products like benzene and paraxylene.

"With this complex, we will become the largest aromatics producer in Southeast Asia and can expand our business to support the higher domestic and regional demand," said Permsak.

Upon completion, ATC's capacity for benzene production at its two plants will rise from the current 363,000 tonnes a year to 830,000 tonnes. Paraxylene production will increase from 616,000 tonnes at present to 1.11 million tonnes.

"This will double our revenues from Bt60 billion in 2005 to Bt120 billion in 2008," added Permsak.

The complex will take more than two years to build.

SK Engineering and Construction Co Ltd and GS Engineering and Construction Corp are the contractors building the complex. Christiani and Nielsen (Thai) Plc is the contractor for the transportation-pipe network between refineries.

Chalida Ekvitthayavechnukul

The Nation

Rayong