Singapore (Reuters) – The Philippines' JG Summit Petrochemical Corp. has started up the country's first naphtha cracker after a few rounds of delays, traders familiar with the matter said.
It has also bought a 30,000-tonne naphtha cargo from a western trading house this week for early July arrival at Batangas City where the cracker is located but the premium of the spot deal was not known. The cracker will provide the feedstock for making plastics.
B.J. Sebastian, senior vice president at JG Summit Holdings Inc., the parent of JG Summit Petrochemical, confirmed the start up and the naphtha cargo buy.
JG Summit Petrochemical's 320,000 tonnes per year (tpy) cracker, which was started up on June 8, is currently operating at about 70 percent to 80 percent of its capacity and the company will decide at a later date how to fine-tune the run rates to cater to demand, the traders added.
The petrochemical maker was initially aiming to start the cracker in March. But it postponed the start-up date to April and later to May before it finally came online this month.
The delay prompted JG Summit Petrochemical to delay the arrival of the naphtha cargo to July from the second-half of June.