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Pertamina to build petrochemical plant in Balongan next year

December 02/2019

MOSCOW (MRC) -- Pertamina will start building a petrochemical factory in Balongan, Indramayu next year. This plant will be integrated with existing refineries, according to TEMPO.

"This will be the largest integrated refinery and petrochemical plant, located in West Java," Pertamina CEO Nicke Widyawati said after meeting with West Java Governor M. Ridwan Kamil on Wednesday, November 27.

Nicke said that the petrochemical plant would utilize the location of Pertamina's refinery in Balongan, Indramayu, as well as the existing facilities.

She said the petrochemical plant will have a processing capacity of up to 350,000 barrels per day of crude oil. "And for petrochemicals, it can process around 2.5 million Nafta (petrochemical raw materials)," Nicke said.

Pertamina is targeting the petrochemical plant to operate in 2026. Nicke did not say how much investment is disbursed for the project.

West Java Governor Ridwan Kamil said Pertamina received investment from a Taiwanese company to build the petrochemical factory. There is also a possible investment from an Abu Dhabi company "for investment in Indramayu," he said on Wednesday.

"The concrete amount is roughly USD8 billion, or close to Rp100 trillion.

Ridwan Kamil said the construction process would take a maximum period of five years.

As MRC wrote previously, in December 2018, Indonesian state energy company PT Pertamina signed an engineering, procurement and construction (EPC) contract to upgrade Balikpapan refinery, reported Reuters with reference to Chief Executive Nicke Widyawati. Balikpapan refinery upgrade is expected to start construction earlier next year, Senior Vice President Daniel Purba said then. First stage of Balikpapan upgrade is scheduled for operation in 2021 to produce Euro V standard fuel, and stage 2 in 2022 to convert its use to process sour crude, from currently processing medium heavy crude.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.

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).
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, PP block copolymer, homopolymer PP, PP random copolymer, propylene, ethylene, petrochemistry, Pertamina, Indonesia, Russia.
Category:General News
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