New Market Report Now Available: Philippines Petrochemicals Report Q4 2010

Oct. 9, 2010 - PRLog -- Growth in the domestic resins market is prompting oil and petrochemicals producers in the Philippines to consider investment in downstream industries, according to BMI's latest Philippines Petrochemicals Report.

Plans mooted recently include Petron's indication that it would resurrect plans for a PP plant at Mariveles, Bataan, with capacity of 160,000tpa PP, expandable to 225,000tpa. It will receive feedstock from Petron's nearbv 180,000b/d oil refinery at Limay close by, which can produce 140,000tpa of propylene. Petron is in the process of evaluating the second phase of its refinery master plan, which should entail an additional investment of US$1.5bn. It plans to invest around US$1bn to upgrade its refinery, which will be funded by US$210mn in corporate bonds and a possible share issue. The upgrade will include a second Petro Fluidised Catalytic Cracking (FCC) unit - due to go onstream in 2014 - that will enable Petron to fully convert residual products to higher-value gasoline, liquid petroleum gas (LPG), diesel and propylene, used mainly for domestic consumption.

JG Summit Holdings could also revive a plan to build the country's first naphtha cracker plant to expand its petrochemical venture, which makes PE and PP, costing US$500mn with construction taking 30 months to complete. The plans were shelved in 1999 due to concerns that it would not be able to compete with imports. A revival of the project in 2005 was postponed again to concentrate on telecommunications and its airline. Now it is in a position to put equity into the project, it is seeking to take advantage of growth in domestic consumption of plastics. However, with no firm plans announced by mid-2010, BMI believes project completion is unlikely before mid-2013.

Until a domestic olefins source is developed, the main weakness in the Philippines' petrochemical industry will remain its dependence on imported ethylene and propylene, as well as aromatics and their derivatives. The production of speciality chemicals and propylene is likely to expand as Petron sets up new petrochemicals plants in the country with the proposed new units likely to bolster overall petrochemicals production by 2014. However, no firm plans have been made, so BMI is holding back on building Petron's plans into its forecasts. The situation may change over the coming months, especially if the economic situation forces the company to shelve some of its capital expenditure plans.

In BMI's Asia Petrochemicals Business Environment Rankings matrix, the Philippines comes 11th of 12 countries, with 39.2 points. This puts it 5.3 points behind Indonesia and 9.0 points ahead of Vietnam. The Philippines petrochemicals sector suffers from lack of locally available feedstock and a relatively small and inefficient local polymers manufacturing base, which is incapable of supplying the plastics industry. If announced plans for petrochemicals expansion come to fruition, the country could climb up the rankings, but is unlikely to exceed India's score. Nevertheless, the Philippines has a supportive business environment in which the petrochemicals industry can grow.

For more information or to purchase this report, go to:
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Partial Table of Contents:

Executive Summary
SWOT Analysis
- Philippines Petrochemicals Industry SWOT
- Philippines Political SWOT
- Philippines Economic SWOT
- Philippines Business Environment SWOT
Global Overview
- Petrochemicals Market Overview
- Table: World Ethylene Production By Country, 2009 And 2014 ('000 tonnes capacity)
- Financial Results
- Table: Financial Results Of Major Petrochemicals Companies, 2009
- Global Oil Products Price Outlook
- Table: Oil Product Price Assumptions, Q409-Q410 (US$/bbl)
- Table: Oil Product Price Data And Forecasts, 2007-2014 (US$/bbl)
Emerging Asia Petrochemicals Overview
- Table: Asian Ethylene Projects
Philippines Market Overview
- Table: Value Of Net Sales Growth By Segment, 2008 (% y-o-y)
- Table: Production Capacity Utilisation By Segment, 2008 (%)
- Market Structure
Industry Trends And Developments
- Trade
- Upstream
- Financial Results
Business Environment
- Petrochemicals Business Environment Ratings
- Table: Asia Pacific Petrochemicals Business Environment Ratings
- Business Environment
- Table: BMI's Asia Pacific Business And Operational Risk Ratings
- Table: BMI's Asia Pacific Legal Framework Ratings
- Table: Asia Pacific Labour Force Quality
- Table: Annual FDI Inflows Into Asia, 2006-2007
- Table: Philippines' Top Export Destinations, 2001-2007 (US$mn)
- Table: BMI's Asia Pacific Trade Ratings
Forecast Scenario
- Petrochemicals Forecasts
- Table: Philippines' Petrochemicals Sector, 2007-2014 ('000tpa, unless otherwise stated)
- Macroeconomic Outlook
- Table: Philippines - Economic Activity, 2007-2014
Company Monitor
- BASF Philippines
- JG Summit Petrochemicals Corp
- PNOC Petrochemical Development
- Petron Corporation
- Tosoh
Country Snapshot: Philippines Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2007-2012 (US$)
- Table: Average Annual Manufacturing Wages, 2004-2006

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=8726...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.