JG Summit spending $197m in petrochem
JG Summit Holdings Inc. of the the Gokongwei group tapped South Korean construction company Posco Engineering & Construction Co. to build the $197-million expansion project of its petrochemical business in Batangas province.
JG Summit senior vice president Bach Johann Sebastian confirmed the deal in a text message.
Posco E&C said it won a petrochemical contract for engineering, procurement and construction to ramp up the existing naphtha cracking center and establish a second stage pygas hydrogenation unit for JG Summit Olefins Corp., the petrochemical unit of JG Summit.
The project will expand the capacity of the NCC to 474,000 tons per year from 320,000 tons and build a second stage pygas hydrogenation unit at the petrochemical complex in Barangay Simlong, Batangas City.
The project is expected to be completed by 2020.
The expansion project is expected to boost ethylene production to 500,000 metric tons a year from the current annual capacity of 320,000 MT.
JG Summit’s $1-billion naphtha cracker facility in Batangas became fully operational in 2015. The facility was expected to deliver $1 billion in annual revenues to the group.