press release

Chevron Press Release - Chevron Chemical To Build World-Scale Aromatics Plant In Thailand

SAN RAMON, Calif., June 17, 1997 -- Chevron Chemical Co. today announced it has entered into a 60-40 joint-venture agreement with the Petroleum Authority of Thailand (PTT) to proceed with engineering for a world-scale aromatics facility in Map Ta Phut, Thailand.

Total investment for the facility -- which would begin production in the year 2000 -- is estimated at $1 billion. It would produce annually 675,000 tons of paraxylene and 600,000 tons of benzene.

The Thai Cabinet approved PTT's 40 percent participation in the project. The new complex will be located in the Star Petroleum Refinery Complex (SPRC). SPRC is a joint venture between PTT and Caltex, a Chevron affiliate.

The facility will produce paraxylene and benzene utilizing Chevron's and Institut Franais du Ptrole (IFP) Eluxyl® and Chevron's Aromax® technologies. Paraxylene is a petrochemical feedstock used in the manufacture of polyester fibers, plastic bottles and film. Benzene is a petrochemical feedstock used in the manufacture of plastics, carpets, automotive parts, and building materials.

"This plant is part of our strategy to combine Aromax® technology for benzene and Eluxyl® technology for paraxylene and expand aggressively in the Asia Pacific region, an area that will have the highest demand growth for these chemicals over the next decade," said Chevron Chemical Senior Vice President Darry Callahan.

PTT's Dr. Viroj Mavichak, executive director petrochemical sector group stated, "This project will provide more than 200 long-term jobs for Thailand and provide several thousand jobs during construction. It also supports PTT's strategy to grow the petrochemical business in Thailand."

Headquartered in San Ramon, Calif., Chevron Chemical is a wholly owned subsidiary of San Francisco-based Chevron Corp.

Updated: June 1997