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Chandra Asri planning to develop an oil refinery to support its petrochemical plant

JAKARTA (Rambu Energy) – PT Chandra Asri Petrochemical Tbk, the Indonesia’s largest petrochemical producer, is currently studying a plan to build an oil refinery that will be integrated with its petrochemical complex in Cilegon, in the western tip of Java Island.

“We are also studying the development of a refinery that would be integrated with this (petrochemical) complex,” President Director of PT Chandra Asri Petrochemical Tbk Erwin Ciputra was quoted by Kompas daily as saying.

Ciputra said Chandra Asri has studied the development of an oil refinery over the past one-and-half years. He made the comment when accompanying the Industry Minister Saleh Husen visiting the Chandra Asri’s petrochemical complex.

Ciputra said the output of the refinery will be used as raw materials for petrochemical as well as for fuel products. The total investment to build the refinery is being studied, he added.

He added the company’s petrochemical plant currently is capable of producing 600,000 tons per year of ethylene and 320,000 tons per year of polypropylene. The company is currently expanding the plant’s capacity that will result in increasing its capacity to producing 860,000 tons per annum of ethylene and 470,000 tons per annum of polypropylene.

Indonesia is currently importing more petrochemical products as domestic production could not meet the demand. A number of companies are now developing a number of petrochemical plants to meet domestic market growing needs. (*)

(Photo courtesy: Industry Ministry)

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