JAKARTA (rambuenergy.com) – Indonesia’s largest petrochemical producer PT Chandra Asri Petrochemical Tbk (TPIA.IJ) has set aside capital expenditure of US$250 million this year to finance a number of its expansion projects, a company official said.
Suhat Miyarso, Vice President Corporate Relation of Chandra Asri was quoted by Kontan daily as saying that the funds will be used to carry on the capacity expansion of its naphtha cracker plant. This will include increasing the production capacity of ethylene from 600,000 tons per year to 860,000 tons per annum, propylene capacity to 470,000 tons per annum from 320,000 per annum at present and the increase capacity of Mixed C4 product to 315,000 tons per annum from 220,000 at present.
Chandra Asri also plans to add the capacity of py-gas production to 400,000 tons per annum from 280,000 p.a. at present.
In addition, Chandra Asri also aims to strengthen the business of its subsidiary PT Synthetic Rubber Indonesia, a tire cord producer.
Portion of the capital expenditure will be used to fund feasibility study to build an oil refinery, which is expected to required investment of approximately US$740 million. The company aims to build an oil refinery with capacity of 100,000 barrels per day, that will be used to produce 2.5 million tons of naphtha per year. Currently, Chandra Asri still imports 1.7 million tons of naphtha per year. (*)