Company’s Business

Business Overall

IRPC Public Company Limited is Southeast Asia’s integrated petrochemical pioneer. The Company operates a refinery and petrochemical complex in Rayong. Its main facilities are located within the IRPC Industrial Park, which features the infrastructure needed for its business, including a deep-sea port, an oil depot, and a power plant.

Below is a business description of IRPC: petroleum, petrochemical, and supporting businesses.

Petroleum business

IRPC’s refinery has a total capacity of 215,000 barrels per day (bpd), the 3rd largest refinery in Thailand in terms of production capacity. IRPC manufactures a range of petroleum products, namely liquefied petroleum gas (LPG), naphtha, gasoline, diesel, and fuel oil. Additionally, IRPC’s Lube Base Oil Group I plant has a total capacity of 320 kilotons per annum (KTA), and the associated asphalt plant has a total capacity of 600 KTA, which are the highest domestic capacities. It is Thailand’s first asphalt plant to sell TIS-certified 40/50 asphalt in the domestic market. IRPC is also a producer of rubber process oil, whose quality has attained international recognition.

Petroleum Extension

The Upstream for Hygiene and Value-Added Products (UHV) project and the Residual Deep Catalytic Cracking Plant (RDCC Plant) have increased the production capacity of IRPC’s refinery by 215,000 bpd. Meanwhile, its production of fuel oil has gone down from 23% to 8% because it has been replaced by higher-value products, mainly propylene and naphtha.

IRPC’s new propylene production capacity is at 320 KTA, adding to the existing capacity of 412 KTA, which results in a total propylene production capacity of around 732 KTA. (Propylene products will be a feedstock for the project to increase the propylene production capacity to 160 KTA and the plan to produce 140 KTA of propylene compound, which is a high value-added product used in the medical and automotive industries.)

The UHV project has a propylene production capacity of 320 KTA. Meanwhile, the Maximum Gasoline project has increased IRPC’s naphtha production capacity from 370 KTA to 462.858 KTA, catering to the domestic market for gasoline. Responsible for the know-how used in the Maximum Gasoline project is the France-based refining technology provider AXENS, who designed the extension’s production process and improved the equipment of the refinery towers. This increase in the gasoline production capacity allowed IRPC to enjoy a larger market share in 2020, adding about 582 million baht a year to its revenue.

Petrochemical business

Nature of Petrochemical Business

IRPC is a producer of upstream petrochemical products, namely olefins and aromatics. These upstream products are feedstocks for IRPC’s downstream petrochemical plants: 931 KTA of polyolefins (HDPE and PP, UHMW-PE) and 383 KTA of styrenics (ABS, SAN, PS, and EPS). These downstream products are sold to producers of finished plastic products in Thailand and overseas under the brand POLIMAXX.

Focusing on the growth of its petrochemical business, IRPC endeavors to stay abreast of global environmental and technological changes through researching and developing new products that will increase its competitiveness. Recent innovations include paralene from natural ingredients, recycled compound resin, and acetylene black for Li-ion batteries (Pim-L and Pim-AL). Furthermore, through the Eco Solution project, IRPC has pioneered a closed loop production for the plastics industry in which one plant’s waste is efficiently used as another’s feedstock. The model ensures that no waste would get out of the loop and become a burden to society.

Supporting businesses

Power and public utilities

IRPC provides electricity, steam, and infrastructure, including wastewater treatment and other related services, to industrial clients, in support of their operations. The details of these services are as follows:

Electrical and Steam

IRPC transmits 22 kV and 115 kV of electricity and 25 bars and 45 bars of steam. IRPC’s combined heat and power generation unit uses natural gas as fuel. IRPC also operates a 307 MW coal power plant. Its power dispatching center ensures the stability of its electrical current and steam. The loop line system allows customers to continue using power despite maintenance.

IRPC also installed a 12.5 MW floating solar farm atop a 200-rai water reservoir, the largest capacity in Southeast Asia. The solar farm contributes to the power stability in IRPC Industrial Park and is considered an innovation that not only increases business opportunities but is also eco-friendly and alleviates global warming. The key feature of IRPC’s floating solar farm is the pontoons made of IRPC’s innovative gray HDPE (High-Density Polyethylene) resin under the brand POLIMAXX, which can reduce the temperature under solar panels by 5-8 degrees Celsius and thus further enhance the power generation efficiency. The HDPE is also resistant to UV and impact, boasts a lifespan of 25 years, and is a US FDA-approved food-grade material. It is also eco-friendly and recyclable, thus reducing 10,510 tons of greenhouse gas emissions, an equivalent of planting 10,000 trees. The floating solar farm also maximizes the utilization of water surfaces in reservoirs intended for drought and flooding management in Rayong.

IRPC has also partnered with IRPC Clean Power Company Limited, resulting in an additional 54 MW of electrical power and 170 tons per hour of steam, contributing to system security and stability as well as the operational continuity of IRPC’s clients and companies within IRPC Industrial Park.

Water

IRPC provides filtered water, demineralized water, cooling water, raw water, and fire-fighting water for the industrial quota given by the Royal Irrigation Department. The Company operates two water filtration plants: one in Ban Khai District and one in the IRPC Industrial Park, to continuously meet its customers’ water demand and foster business stability.

Pneumatics

IRPC produces and provides nitrogen, instrument air, and plant air for industrial use. The Company is also a business partner of pneumatics leaders.

Wastewater Treatment

IRPC uses membrane bioreactor plus activated carbon adsorption (MBR Plus AC) to treat wastewater. This bioprocess is highly efficient and stable. The treated water consistently passes inspection, garnering the trust and confidence of the surrounding communities.

Port and Tank Services

IRPC has a number of domestic and international ports where goods are transported, with ports available to outsiders in different regions. In 2020, thanks to channel deepening projects, the port business generated total revenue of 360 million baht, an increase of 20 million baht or 6% from 2019. The ports handled approximately 16 million tons of goods and served approximately 2,620 vessels. The details are as follows:

IRPC Deep Sea Port, Rayong (Eastern Thailand)

Bulk & Container Terminal (BCT)

The terminal is 900 meters long and 44 meters wide. It comprises six berths, which accommodate vessels of various sizes, ranging from 800 to 150,000 DWT. They handle commodities, such as metal, palm shells, coal, granite, sand, fertilizers, and construction materials. Currently, the terminal accommodates more than 220 vessels per year.

In 2020, BCT was renovated to increase the tonnage range and accommodate investments in the Eastern Economic Corridor (EEC). As a result of the renovation project, the channel was deepened from 12.5 meters to 14.5 meters, enabling the port to accommodate more metal transport. In addition, thanks to the increase production of rubber glove manufacturers, the total volume of goods handled at the port was 1.2 million tons, an increase of 0.2 million tons or 20% compared to 2019.

Liquid & Chemical Terminal (LCT)

This particular terminal is equipped with state-ofthe- art equipment to handle liquids and gases efficiently and safely. The terminal is 1,623 meters long. It comprises 6 berths that can accommodate vessels of different sizes, ranging from 1,000 to 250,000 DWT. Currently, the terminal accommodates more than 2,400 vessels per year.

IRPC provides the following services and facilities for customers: tug boats, port pilots, service boats, mooring, freshwater, bunkers, nautical charts, cranes, hopper cars, weighing, cargo yards, and warehouses.

As a result of a channel deepening and wharf renovation project, the channel has been deepened from 17 meters to 19 meters, reducing costs of material imports. In 2020, the port handled approximately 15 million tons of goods, a 0.85 million tons increase from 2019.

Chao Phraya Port, Phra Pradaeng Oil Depot, Samut Prakan

Wharf No. 13 can accommodate a cargo ship of up to 140 meters length with a draft of up to 8.6 meters and a capacity of up to 15,000 DWT.

Pa Sak Port, Ayutthaya Oil Depot, Tha Ruea District, Ayutthaya

Bulk & Container Terminal (BCT)

This terminal can accommodate a cargo ship of up to 140 meters length with a draft of up to 6 meters and a capacity of up to 500 DWT.

Oil-Cargo Terminals 1A and 1B

These terminals can accommodate a cargo ship of up to 49 meters length with a draft of up to 6 meters and a capacity of up to 1,000 DWT.

IRPC Deep Sea Port, Sai Ri Beach, Pak Nam Sub-district, Mueang District, Chumphon (Southern Thailand)

This particular port can accommodate a cargo ship of up to 85 meters length with a draft of up to 5 meters and a capacity of up to 2,000 DWT.

Tank Service

Additionally, IRPC’s team of experienced specialists operates 299 tanks for liquid petroleum and petrochemical products with a storage capacity of 2.9 million tons, using an efficient management system that meets international safety standards. These tanks accommodate IPRC’s petroleum-based products and those of others. These tanks are located in different oil depots across Thailand-namely Rayong (Eastern Thailand), Phra Pradaeng (Bangkok), Phra Nakhon Si Ayutthaya (Central Thailand), and Chumphon (Southern Thailand). Each depot has a port or wharf to accommodate sea freights, which makes transportation and distribution efficient, lowers costs, and saves time. In 2020, IRPC distributed an average of 229 million liters of oil products and 94,230 tons of plastic resins to its oil depots per month.

Asset management business

IRPC manages approximately 12,000 rai of high-potential land in Rayong and other provinces, including the WHA Industrial Estate Rayong (WHAIER). The Company has developed these plots of land into high-potential industrial estates capable of supporting Thailand’s industrial expansion, especially the development of the Eastern Economic Corridor (EEC) and other projects under the government’s investment promotion policies. IRPC’s asset management business is further divided into three categories:

IRPC Industrial Park, Mueang District, Rayong:

The IRPC Industrial Park features a complete range of infrastructure for industrial development. This industrial hub connects upstream Petroleum and Petrochemical products with direct downstream petrochemical products, supporting the needs of high technology industries.

WHA Industrial Estate Rayong (WHAIER), Ban Khai District, Rayong:

This industrial estate is a joint venture between IRPC and WHA Industrial Development Public Company Limited (WHAID) with a shareholding ratio of 40/60, respectively. It caters primarily to accommodate future investments in the EEC.

Others:

IRPC owns a large plot of land of about 2,200 rai in Chana District, Songkhla, which can be developed into an industrial support base or a commercial base to support a deep water port project and a power plant project of the government. IRPC also owns other smaller plots of land in Rayong, Chiang Mai, and Lamphun.

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