PH chemical exports seen to spike in a few years
Chemical export revenues are expected to grow by over 15 percent annually over the next two years, driven mainly by the completion of new facilities.
The increase in revenues is expected to come from the naphtha cracker plant that may start commercial operations in January, and the petrochemical plant that may be completed by early 2015, said Roberto Batungbacal, president of the Samahan sa Pilipinas ng mga Industriyang Kimika (SPIK).
Batungbacal was quoted by the Philippine Exporters Confederation Inc. as saying that the opening of the new naphtha cracker is significant for the country’s chemical industry.
“We have now different chemical production, but are not integrated … The experience of other countries is that, once you have a cracker, production and demand will start to pick up faster,” he said in a statement.
In an earlier interview, Batungbacal said that, this year alone, the Philippine chemical industry hopes to exceed the $2.5-billion export revenue posted last year year.
He noted how the sector performed well in the first half of 2013.
The sector also remains optimistic that it can double export sales to $5 billion by 2016—as outlined in the Philippine Chemical Masterplan—given the rising demand for chemicals across various industries, including construction, mining and energy, he said.
Based on the masterplan, the sector is targeting an export bill of $10 billion by 2022, and as much as $30 billion by 2030.
“Exports of chemicals rose by 24 percent to $1.4 billion from January to July this year. I think [exports] will exceed last year’s [sales], although it’s very hard to tell as there are risks and opportunities. Exports of chemicals on the average had been growing 17 percent for the last five years, and we’re hoping that, this year, we would be higher than the average,” Batungbacal said.
Demand for chemicals is expected to further surge with the boom in construction, the inputs for which would require use of chemicals; the commissioning of JG Summit Holdings Inc.’s $800-million naphtha cracker plant next year; and the completion of Petron Corp.’s $2-billion Refinery Master Plan Phase–2 (RMP-2), which will increase production of gasoline, diesel and petrochemical products.
