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Indonesia plans to proceed with complex to reduce reliance on some PC imports

July 31/2013

MOSCOW (MRC) -- The Indonesian government expects to begin work next year on a USD4-billion fertilizer and petrochemical complex in Bintuni Bay, West Papua, which is intended to help the country shift from being a net importer to a net exporter, said Apic-online.

Panggah Susanto, the Industry Ministry's director general for manufacturing-based industry, said the integrated complex will produce urea and ammonia-based fertilizers and a range of petrochemicals including methanol, polyethylene and polypropylene.  Commercial production is expected to begin in 2016.

The project has not yet been assured of gas allocations, which are expected to come from the Tangguh liquefied natural gas field in West Papua.

Panggah noted that several investors, both domestic and foreign, have expressed interest in participating in the complex.  He cited Chandra Asri and Ferrostaal, who have agreed to study the feasibility of developing a methanol-based olefin project in Bintuni to produce up to 175,000 t/y of ethylene and 400,000 t/y of polypropylene.

As MRC wrote before, Pertamina has requested an Indonesian government guarantee of protection that would restrict other companies from building petrochemical refineries capable of producing 1 million tpa in the country. Pertamina, citing petrochemicals as one of its "core growth pillars," has disclosed plans to invest about USD5 billion in an integrated refinery and petrochemical complex on Java Island.
Author:Anna Larionova
Tags:PP, PE, ethylene, min.udobreniya, Pertamina, Indonesia.
Category:General News
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