TOP looks into naphtha redirection

TOP looks into naphtha redirection

Aim to add value in competitive region

Atikom: CFP focus gets rejig
Atikom: CFP focus gets rejig

SET-listed Thai Oil Plc (TOP), Thailand's biggest oil refiner by capacity, is considering adding value to petroleum naphtha, made at its Clean Fuel Project (CFP), after witnessing stiff market sentiment for naphtha makers across Asia.

President and chief executive Atikom Terbsiri said the CFP is projected to have capacity of 1 million tonnes of petroleum naphtha per year, but the naphtha market remains murky at the global level.

"TOP plans to make value-added petroleum naphtha, moving away from the production of commodity-grade naphtha," he said.

"TOP is considering either developing it by itself or forming a joint venture with other PTT companies."

Petroleum naphtha is a hydrocarbon liquid stream, derived from refining crude oil to be a raw material for general plastics. It is added to engineering plastic.

Mr Atikom said this plan will be considered alongside the CFP, which is being constructed and developed, with TOP hoping to conclude the plan by 2019.

The CFP is located in Sri Racha district, Chon Buri province. The project is set for development from 2019-22 at a total cost of US$4.73 billion (149 billion baht).

Last year, TOP announced it will proceed with investment in the CFP after several years on the drawing board.

The CFP is meant to add to TOP's existing oil refinery and utility units.

The capacity for oil refining will increase by 45% to 400,000 barrels per day, up from 275,000 barrels per day.

TOP aims for a commercial operation date in 2023.

In January, Global Power Synergy announced its acquisition of the Energy Recovery Unit (ERU) project from TOP for $757 million.

The ERU is part of the CFP, located on 36 rai in Sri Racha. It plans to use residue and waste from refined oil in the CFP to generate 250 megawatts of power and 175 tonnes of steam per hour.

Mr Atikom said after TOP completes the acquisition transaction, it will have a remaining budget of $500 million, planned for development of CFP infrastructure such as deep-sea port capacity improvement, oil tankers and power plants.

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