Thailand’s GC deepens focus on specialties amid overcapacity – CEO

SINGAPORE (ICIS)–Thailand’s PTT Global Chemical (GC) is deepening its commitments to feedstock flexibility, high-value specialty and bio-based & green chemicals, as CEO Narongsak Jivakanun urges regional coordination within ASEAN to tackle global supply chain disruptions and overcapacity.

• Supply chain reorganization a major concern
• Proposes regional coordination, not just joint ventures
• GC targets net-zero emissions by 2050

Highlighting the unprecedented challenges facing the chemical industry currently, Jivakanun said, “We’ve all seen the same situations. It’s simply a period of high uncertainty, making it challenging to manage the business daily.”

The CEO was speaking with ICIS on the sidelines of the two-day Asia Petrochemical Industry Conference (APIC) in Bangkok, Thailand, which ended on 16 May.

Jivakanun added that “the recent tariffs will blur the picture”.

He noted that supply chain issues are a dominant concern, with companies reorganizing their business operations to circumvent potential tariffs and trade barriers.

“I think everyone’s trying to figure out how best to reorganize their supply chain,” Jivakanun noted.

He observed “a big uptick in terms of volumes” before 2 April, followed by a slowdown in some value chains and a trade flow change.

CALL FOR ASEAN COLLABORATION AMID OVERSUPPLY
Addressing the pervasive industry concern of oversupply, Jivakanun called for regional coordination among ASEAN member countries.

“What I envision and propose to all the players is coordination,” Jivakanun said, distinguishing this approach from conventional joint ventures.

“We may look at Southeast Asia as a region. If we were to build an ecosystem or supply chain for the future specialty market, we should know where we’re heading in terms of market end-use and then work backward,” Jivakanun explained. He believes “now is the time for us to think about that.”

He acknowledged data suggesting 2028 would be a turning point for chemicals oversupply conditions, expressing hope for “more careful, more disciplined” capacity building.

In response to questions about the current downturn in demand, Jivakanun said “Everyone is trying to keep their assets going as much as they can, aligning with marginal cost.”

He added that such conditions are “not sustainable,” anticipating further industry consolidation and rationalization.

FOCUS ON THREE STRATEGIC AREAS
GC has diversified considerably from being a purely commodity-based business primarily focused in Thailand, and is now focusing on three strategic areas: feedstock flexibility, diversification into bio-based products, and specialty chemicals.

GC commands robust feedstock flexibility, allowing it to utilize a wide range of raw materials from ethane to propane and liquid naphtha, he said.

“GC derives ethane from the gas fields in Thailand, and we’ll continue to maximize that. Now, GC sees an opportunity to bring ethane from the US,” Jivakanun said.

This strategic import project will see “400,000 tonnes of ethane from the US to Thailand,” enhancing cost savings from alternative feedstocks.

The company expects to begin receiving imported ethane in 2029.

This move comes as more companies, from Europe to India and China, are growing comfortable with long-distance ethane shipments, driven by the competitiveness of US shale gas.

ADVANCING BIO/GREEN CIRCULARITY AND NET-ZERO ASPIRATIONS
Bio-based initiatives are among the key focuses for GC.

The company began with oleochemicals through its joint venture Emery Oleochemicals, and developed PLA biopolymer via NatureWorks.

A significant milestone is the upcoming PLA biopolymer production plant in Thailand, which will utilize sugarcane as a raw material.

“The plant is due to be completed by the end of the year and start commercial operation next year,” Jivakanun said.

While acknowledging increasing supply in the market, he emphasized that demand growth will stem from “new application” development, citing examples in 3D printing, tea bags, and coffee capsules, particularly driven by Asian markets.

More recently, GC has expanded into the biorefinery business, launching an initiative this year using co-processing technology.

The co-processing technology allows GC to integrate “non-fossil fuel-based feedstocks into our petroleum-based refinery with very minimal modification,” Jivakanun explained, enabling the production of bio-based products.

GC is also Thailand’s first commercialized producer of sustainable aviation fuel (SAF), employing the mass balance approach and is certified by the ISCC CORSIA standard.

These efforts align with GC’s commitment to becoming a net-zero company by 2050 through a three-pronged approach: optimizing production to reduce carbon footprint, diversifying to low-carbon and high-value businesses, and implementing CCUs.

The company is collaborating with PTT Group on a major CCU infrastructure project in Thailand, and is openly inviting international cooperation in this area.

“These strategies define how we aim to grow our business while simultaneously decarbonizing our footprint,” Jivakanun added

As for the third pillar, Jivakanun said that one of the company’s growth platform is centered on building regional hubs.

“We believe these hubs are vital solutions for the future,” Jivakanun said.

GC’s wholly owned subsidiary allnex is now replicating its hub model in India after successfully establishing one in China, with its Phase 1 capacity expansion expected to finish by year-end.

The company’s final investment decision for a new allnex southeast Asia hub in Thailand is expected by early next year, leveraging its fully integrated infrastructure in Map Ta Phut, Rayong.

Interview article by Nurluqman Suratman

Thumbnail image: A PTTGC production facility. (Source: GC company factsheet)