BST temporarily shuts MTBE unit

Bangkok Synthetics Co. Ltd. (BST), Thailands sole producer of methyl tertiary butyl ether (MTBE), temporarily shut its facility due to excess raffinate-2 inventory. It hopes to restart on September 3. Raffinate-2 is derived as a by-product in the production of MTBE. BST’s output is normally sold to Rayong Olefins Co. (ROC), which uses it as feedstock to produce ethylene. Sources from both companies said that the reason for the shutdown of BSTs unit is due to a glitch at ROCs steam cracker. ROC can produce 800,000 metric tons per year (mtpy) of ethylene but had already reduced its capacity to 90% since March due to poor margins. An ROC source said it has recently resumed operations of its steam cracker. BST has a capacity of 55,000 mtpy of MTBE, and is integrated with its 140,000-mtpy butadiene unit. Both products are mostly exported. BST buys crude C4 feedstock from domestic steam cracker operators PTT Chemical and ROC and imports methanol from Malaysia, Indonesia and Saudi Arabia. (August 29, 2008)