PTT delays petrochemical and refining joint venture partner choice

MGR Online•Economy•5d ago

Reader Briefing

PTT has postponed the final selection of foreign partners for its petrochemical and refining business due to Middle East geopolitical instability.

•PTT postponed the conclusion of finding joint venture partners for its petrochemical and refining group from the original end-of-year goal.
•Kongkrapan Intrajang confirmed that PTT will not scrap the plan to find partners despite improvements in industry performance.
•Middle East conflict and the closing of the Strait of Hormuz have caused global oil price volatility and disrupted crude oil exports.
•PTT has reduced its crude oil imports from the Middle East from 70% to 30%.

•PTT has postponed the conclusion of finding foreign joint venture partners for its petrochemical and refining group, failing to meet the target set for the end of 2026.
•Geopolitical instability, specifically unrest in the Middle East, has caused global oil price volatility.
•Companies investing in petrochemicals and refineries in the Middle East that cannot export oil are looking to diversify risk by investing in the ASEAN region due to high demand for petroleum and plastic pellets.
•New foreign companies with Middle East investments have entered negotiations with PTT to become partners in the petrochemical and refining group.
•PTT has shifted its crude oil imports to other sources, reducing imports from the Middle East from 70% of demand to 30% after the closure of the Strait of Hormuz.
•Kongkrapan Intrajang stated that PTT will not scrap the plan to find joint venture partners even if the petrochemical and refining industry's performance improves.
•PTT remains the majority shareholder of the flagship companies in the petrochemical and refining business group.
•PTT intends for new partners to help improve the PTT business group and assist in procuring new petroleum sources.

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PTT(ปตท.)

A company seeking foreign joint venture partners for its petrochemical and refining business group.

PTT Global Chemical Public Company Limited(บริษัท พีทีที โกลบอล เคมิคอล จำกัด (มหาชน))ℹ️

A company within PTT's petrochemical and refining group, also known as PTTGC.

Thai Oil Public Company Limited(บริษัท ไทยออยล์ จำกัด (มหาชน))

A company within PTT's petrochemical and refining group, also known as TOP.

IRPC Public Company Limited(บริษัท ไออาร์พีซี จำกัด (มหาชน))

A company within PTT's petrochemical and refining group, also known as IRPC.

Kongkrapan Intrajang(คงกระพัน อินทรแจ้ง)

The Chief Executive Officer and President of PTT Public Company Limited.

Middle East(ตะวันออกกลาง)ℹ️

A region experiencing instability and conflict that has impacted global oil prices and PTT's import strategy.

ASEAN(อาเซียน)ℹ️

A region with high demand for petroleum and plastic pellets where foreign investors are looking to diversify risk.

Strait of Hormuz(ช่องแคบฮอร์มุซ)ℹ️

A waterway whose closure led to the disappearance of crude oil exports from the market.