First-ever petrochemical venture coming soon

Hot on the heels of strong prospects of producing oil, Sri Lanka is to soon have its first-ever petrochemical  venture, which given the planned mega scale, will position the country on the global map of this high tech industry.

The Government has approved a project to build what would be one of the world’s largest single location Polyester Bottle Resins (PET resin) manufacturing plants in Hambantota by a consortium of investors promoted by the Singapore-based Peak Energy Ltd. Polyethylene terephthalate is the clear and lightweight plastic used around the world to package foods, beverages, personal care products and other consumer items.

The envisaged investment is US$ 150 million, whilst the project, groundbreaking ceremony of which is slated for June, when completed by late next year, would be handling business worth US$ 1 billion.

The venture will be using the latest energy and cost efficient technology known as MTR (Melt To Resin), provided by Uhde Inventa Fischer, a leading German firm owned by Euro 45 billion worth Thyssen Group.

In the second phase, Hambana Petrochemicals Ltd. (HPL) will set up a one million ton PTA (Purified Terephthalic Acid) plant as part of its backward integration plant and further expand petrochemical downstream activities in country. The second phase is expected to generate revenues of over $ 2 billion.

Investments like HPL will turn Hambantota into Singapore, where good infrastructure paved the way for Exxon, Shell and other majors to set up shop, according to petrochemical industry analysts.

The pioneering venture will also boost the country’s foreign investment profile, especially in the energy sector as well as shore up foreign exchange earnings via exports.



Ensuring a secure forward market, HPL has tied up with a reputed multinational company for an order worth over $ 4 billion, ensuring a ready market for over five years.

Analysts said the venture will be a forerunner to lure more investments in this new industry and related ancillary services. “Sri Lanka needs more FDIs as well as exports to boost reserves as well as jobs in addition to regional development,” they added.

The Government is developing Hambantota as a modern city with sea and air ports along with other strategic-related industries and HPL is one of the several new investors lining up to tap prospects in establishing export-oriented enterprises in post-war Sri Lanka.

PET, which stands for polyethylene terephthalate, is a clear, strong and lightweight plastic belonging to the polyester family.



It is typically called “polyester” when used for fibers or fabrics, and “PET” or “PET Resin” when used for bottles, jars, containers and packaging applications.

PET is the world’s packaging choice for many foods and beverages because it is hygienic, strong, lightweight, shatterproof, and retains freshness. It is most commonly used to package carbonated soft drinks and water. Consumers can identify PET containers by the triangular #1 resin identification code found on the bottom of PET bottles and jars.

Best of all, PET is recyclable and highly sustainable.  It is the most recycled plastic worldwide. PET can be recycled again and again – back into containers for foods, beverages and personal care products  – or into carpet, clothing, automotive parts, construction materials, industrial strapping, and scores of other products.

The basic building blocks of PET are ethylene glycol and terephthalic acid, which are combined to form pellets of PET. These resin pellets are then heated to a molten liquid that can be easily extruded or molded into items of practically any shape.

More specifically, when the two raw materials of PET are combined under high temperatures and low vacuum pressure, long chains of the polymer are formed. As the mixture becomes thicker, the chains grow longer. Once the appropriate chain length is achieved, the reaction is stopped. The resulting spaghetti-like strands of PET are then extruded, quickly cooled, and cut into small pellets.

When the resin pellets are reheated to a molten liquid stage, the polymer chains can be stretched in one direction (for fibers) or in two directions (for bottles and films). If the polymer is cooled quickly while it is stretched, the chains are frozen with their orientation intact. Once set in stretched form, the material is extremely tough.

If PET is held in the stretched form at elevated temperatures, it slowly crystallizes and starts to become opaque, more rigid and less flexible. This crystalline form PET is often used for take-home and prepared-food containers and trays that can be reheated in the oven or microwave.