MOSCOW (MRC) -- PT Chandra Asri Petrochemical (CAP) has signed an agreement with Univation Technologies, LLC, located in the United States, to use the UNIPOL PE Progress for a new world scale 400KTA polyethylene (PE) plant at its integrated naphtha cracker complex in Cilegon, Banten, said the producer in its press release.
The agreement covers process design package, including licence, to produce linear low density polyethylene (LLDPE), high density polyethylene (HDPE) and metallocene LLDPE (mLLDPE).
This commitment is a major milestone in CAP's strategic plan to build a new PE plant with final investment decision expected by mid 2017 and now CAP is doing a process design package (PDP).
Currently, CAP operates its PE plant in Cilegon with total capacity of 336KTA, where one production train with capacity of 200KTA is using UNIPOL PE Technology licenced from Univation Technologies to produce LLPDE and HDPE resins. Product applications for LLDPE and HDPE among others as blown film, rice bag, toy, bottle lid, shopping bag, houseware, rope, tarpaulin, pipe, container box, etc.
Following the completion of its naphtha cracker expansion by 43% to 860KTA and in line with its strategy of pursuing vertical integration, CAP has reviewed various PE technologies and selected Univation Technologies for a new plant to add value to its excess ethylene product, which is currently allocated for merchant sales.
A new PE plant will increase the source of domestic supply of PE products, which falls short of Indonesia's PE market demand, estimated at 1.4 million TPA, and which continues to grow with the country's GDP. In addition, a new PE plant will expand CAP's petrochemical footprint and further contribute to the growth of Indonesia.
As MRC wrote previously, Barito Pacific's subsidiary Chandra Asri Petrochemical (CAP) is reportedly planning to build a naphtha refinery at its Cilegon complex in Banten, Indonesia, with an estimated investment of USD740m.
Chandra Asri Petrochemical (CAP) is the largest vertically integrated petrochemical company in Indonesia with facilities located in Ciwandan, Cilegon and Puloampel, Serang in Banten Province. CAP is Indonesia's premier petrochemical plant incorporating world-class, state-of-the-art technology and supporting facilities. At the heart of CAP lies the Lummus Naphtha Cracker producing high quality Ethylene, Propylene, Mixed C4, and Pyrolysis Gasoline (Py-Gas) for the Indonesian as well as regional export markets.
MRC