JAKARTA (RambuEnergy.com) – PT Chandra Asri Petrochemical Tbk (IDX:TPIA), through its wholly-owned subsidiary PT Chandra Asri Perkasa, has awarded six license and engineering design agreements to world-class licensors as part of the process to develop its second petrochemical complex with an estimated investment of US$4-5 billion.
The six licensors are CB&I’s Lummus Technology for Naphtha Cracker and Butadiene plant; GTC Technology for aromatics (benzene, toluene and xylenes) recovery plant; Texplore for High Density Polyethylene (HDPE) plant; and Lyondellbasell for Low Density Polyethylene (LDPE) and Polypropylene (PP) plants.
“As part of our growth strategy to meet the country’s growing petrochemical demand, Chandra Asri Perkasa was established in April 2017 to undertake feasibility study of a second petrochemical complex which is estimated to have total investment around US$4-5 billion,” the company said in a statement.
The award of these technology licenses is a significant milestone reinforcing the company’s plan to expand our petrochemical footprint. “We are confident that the selected technologies will ensure robust productivity and efficiency for the new complex,” said Erwin Ciputra, president director of Chandra Asri.
The second complex is expected to comprise 1.1 MMTA Ethylene, 600 KTA Propylene, 175 KTA Butadiene, 363 KTA Benzene, 450 KTA HDPE, 300 KTA LDPE and 450 KTA PP for full year of operations.
The second petrochemical complex (CAP2) will complete basic engineering design by the end of 2018 and expects the final investment decision to be made in early 2020 while the commercial operation is planned to start in early 2024.
“Once our second complex is fully operational, we will be able to better serve Indonesia’s domestic demand and ease import burden while also contributing to Indonesia’s economic growth and improving trade balances,” Erwin said.
“We believe our project execution will be smooth, with incentives and support from the government as one of the ten priority industries under the Master Plan of National Development Year 2015-2025,” Erwin added.
The petrochemical products from the new petrochemical plant are targeted to reduce the country’s import of olefin and polyolefin from the current level of more than 2 million metric tons per year.
At present, CAP is the largest integrated petrochemical producer in Indonesia with market share of approximately 52%, 24% and 29% of the domestic market in olefin, polyethylene and polypropylene, respectively.
Chandra Asri Petrochemical is a subsidiary of PT Barito Pacific Tbk, founded by businessman Prajogo Pangestu. Its plants are located in Cilegon and Serang of Banten Province in the western tip of Java Island. The company is the only producer of ethylene, styrene monomer and butadiene.
The company is also the largest producer of polypropylene in Indonesia.. It produces plastic raw materials and chemicals used for packaging products, pipes, automotive, electronics, etc. (*)