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Thai crackers cut rates 10% on drought, further cuts possible
Tokyo (Platts)--17Jun2005
Thailand's Rayong Olefins Co, Thai Olefins Co, and National Petrochemical Co
have all been forced to reduce the operating rates at their crackers this week
by 10% due to a severe drought in the Map Ta Phut area, industry sources said
Friday.
The drop in operating rates was in response to a government directive
that said companies in Map Ta Phut must reduce their water consumption by 40%
by the end of June. The companies would likely have to further reduce their
rates if the drought continues, sources said. The measures would be in effect
until the water problem is solved. The companies were currently formulating a
strategy for how to deal with the water shortage. Sources were not sure how
much operating rates for the downstream plants would have to be reduced as
derivative units utilize less water than crackers. If downstream units are
able to operate at higher rates than the crackers, it would cause demand for
feedstocks to surge. ROC, TOC and NPC have a combined ethylene production
capacity of 1.95-mil mt/yr and propylene production capacity of 632,000 mt/yr.
This story was originally published in Platts Petrochemical Alert
http://petrochemcialalert.platts.com
http://www.platts.com/Petrochemicals/Ne ... s/News&S=n
Thai crackers cut rates 10% on drought, further cuts possible
Tokyo (Platts)--17Jun2005
Thailand's Rayong Olefins Co, Thai Olefins Co, and National Petrochemical Co
have all been forced to reduce the operating rates at their crackers this week
by 10% due to a severe drought in the Map Ta Phut area, industry sources said
Friday.
The drop in operating rates was in response to a government directive
that said companies in Map Ta Phut must reduce their water consumption by 40%
by the end of June. The companies would likely have to further reduce their
rates if the drought continues, sources said. The measures would be in effect
until the water problem is solved. The companies were currently formulating a
strategy for how to deal with the water shortage. Sources were not sure how
much operating rates for the downstream plants would have to be reduced as
derivative units utilize less water than crackers. If downstream units are
able to operate at higher rates than the crackers, it would cause demand for
feedstocks to surge. ROC, TOC and NPC have a combined ethylene production
capacity of 1.95-mil mt/yr and propylene production capacity of 632,000 mt/yr.
This story was originally published in Platts Petrochemical Alert
http://petrochemcialalert.platts.com
