Kuraray, Sumitomo and PTT agree on butadiene project

Kuraray, Sumitomo, and PTT Global Chemical have signed a Head of Agreement （HOA） to jointly perform a Detailed Feasibility Study (DFS) for potential project development of manufacturing and sales of butadiene derivatives in Thailand. This has been announced by the companies on 13 September 2016.

The Feasibility Study (FS) will be targeted to start operation of 16,000 t hydrogenated styrenic block copolymers (HSBC) and 13,000 t polyamide 9T (PA9T) in Hemaraj Eastern Industrial Estate (HEIE), Rayong in Thailand in 2020. Butadiene as a key raw material will be supplied by PTTGC.

After the successful completion of a prelim joint feasibility study for potential development of butadiene derivatives in Thailand on a Memorandum of Understanding (MOU) signed by Kuraray, PTTGC and Sumitomo in September 2015, the companies decided to move forward the project to the early phase of engineering study to perform Front End Engineering Design (FEED) by signing HOA. The Final Investment Decision (FID) is expected to be made in the second half of 2017. The agreement will lead to a new joint venture company. Equity proportion and other details are currently discussed.

Kuraray further announced that in addition it will solely conduct a feasibility study of a 5,000 t 3-methyl-1,5-pentanediol (MPD) at the same site of the plants of butadiene derivate. The FID will be made end of 2017; start of the operation is targeted in late 2020. The isobutene will also be supplied by PTTGC.