MOSCOW (MRC) -- PT Indo Thai Trading (ITT) has launched operations as a joint venture of Indonesia's Pertamina and Thailand’s PTT Global Chemical (PTTGC), which will ultimately be responsible for marketing and distributing production from an integrated petrochemical complex planned by the two companies, as per Apic-online.
The incorporation of ITT is a "significant milestone" in the implementation of Pertamina and PTTGC's joint cooperation, noted Pertamina.
The proposed complex, which is scheduled to come on stream by 2019 in Balongan, West Java, is expected to include the production of about 1.2-million t/y of polyethylene and polypropylene and nearly 1-million t/y of other petrochemical derivatives such as monoethylene glycol and butadiene. ITT will be responsible for the marketing and sales of all production from this complex.
Prior to the complex coming on stream, ITT will serve as the exclusive distributor for Pertamina and PTTGC’s products in Indonesia. In order to diversify its portfolio, ITT also plans to outsource products from third parties.
As MRC wrote previously, in late 2013, Thailand's PTTGC signed a joint-venture agreement with Indonesian state-owned energy company Pertamina to set up a petrochemical complex with an investment of around USd4-5 billion (Bt127 billion to Bt158 billion). Both companies will have a 50:50 stake in this downstream-to-upstream project. They also signed a deal to market products from the project jointly.
Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC