Hashim to build $2.3b petrochemical complex in E. Java<\/p>\n
JAKARTA (JP): A joint venture of Indonesian, Thai and Japanese
\ncompanies signed an agreement yesterday to develop a US$2.3
\nbillion olefin and aromatic plant in Tuban, East Java.<\/p>\n
\"The complex, scheduled for completion by mid-1999, will be
\nthe largest of its kind in Indonesia,\" Hashim S. Djojohadikusumo,
\nchief executive officer of PT Tirtamas Majutama, said.<\/p>\n
The joint venture, PT Trans-Pacific Petrochemical Indotama, is
\n10 percent owned by Tirtamas, 60 percent by PT Trans Pacific
\nPetrochemical Ltd. (a Tirtamas' affiliate), 20 percent by a
\nsubsidiary of Thailand's Siam Cement Public Company Ltd and 10
\npercent by Japan's Nissho Iwai Corporation.<\/p>\n
Hasjim said the plant would produce three million metric tons
\nof olefin and aromatics annually.<\/p>\n
State-owned oil and gas company Pertamina would provide 98,000
\ntons of condensate a day to feed the plant.<\/p>\n
Other feedstock not available in Indonesia would be supplied
\nby Koch Industries subsidiary U.S. Koch Refining International.<\/p>\n
Hashim said $1.75 billion would be raised in loan facilities
\nfrom financial institutions including the U.S. Export Import
\nBank, Japan's Export Import Bank, BA Asia, the Hong Kong-based
\nmerchant banking arm of Bank of America and local banks, as well
\nas several Japanese trading companies.<\/p>\n
BA Asia would underwrite loan facilities, he said.<\/p>\n
\"Financial closing is expected to take place in the third
\nquarter of 1997,\" he said.<\/p>\n
The plant would be built by a consortium involving JGC
\nCorporation of Japan and three American companies; Stone &
\nWebster Engineering Company, AEC International Projects Inc and
\nProcess Engineers Incorporated.<\/p>\n
PT Chandra Asri is Indonesia's sole producer of olefin,
\nproducing 650,000 tons of propylene and 322,000 tons of ethylene
\nannually.<\/p>\n
BP Chemicals Ltd recently announced that it, along with the
\nSalim group and four Japanese companies, planned another plant in
\nMerak, West Java with an annual capacity of 700,000 tons of
\nethylene and 300,000 tons of propylene. Commercial production was
\nscheduled for 2000.<\/p>\n
Domestic demand for ethylene would increase from 800,000 tons
\nto 1.7 million tons annually by 2000, while demand for propylene
\nwould be up from 650,000 tons to one million tons annually by
\n2000, BP Chemicals said.<\/p>\n
Minister of Investment Sanyoto Sastrowardoyo said at
\nyesterday's ceremony Indonesia would need four olefin plants to
\nfulfill domestic markets by 2000.<\/p>\n
Ethylene and propylene are used in textiles, fibers, plastics,
\ncosmetics, paint, piping, brake fluid, antifreeze and others.<\/p>\n
Hashim said most of the olefin and some aromatic products
\nproduced would be sold to downstream facilities it would develop
\nat the complex.<\/p>\n
The four downstream facilities, valued at $800 million, were
\na polyethylene plant with an annual capacity of 180,000 tons, a
\nlow-density polyethylene plant with an annual capacity of 300,000
\ntons, a polypropylene plant with an annual capacity of 200,000
\ntons and a monomer plant with an annual capacity of 500,000 tons.<\/p>\n
\"Downstream facilities are scheduled for completion at the
\nsame time as the plant,\" he said.<\/p>\n
Koch Refining International, he said, was also interested in
\nbuying some of the plant's aromatic products. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hashim-to-build-23b-petrochemical-complex-in-e-java-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}