CPC buys RI naphtha

CPC buys RI naphtha

TAIPEI (Reuter): Taiwan's state-run Chinese Petroleum Corp (CPC) said it signed two preliminary agreements with groups of petrochemical firms on Saturday, paving the way for a plan to move its No. 2 naphtha cracker to Indonesia.

The first pact involves the formation of a joint venture with several Taiwanese and Indonesian firms for the operation of CPC's No. 2 cracker once it is moved to Indonesia from Taiwan's southern city of Kaohsiung, a CPC statement said.

CPC will take 30-35 percent of the total stake, while two Indonesian firms, PT Graha Centermine and Maspion Group, will share another 30-35 percent.

Taiwan's Oriental Union Chemical, Union Petrochemical Corp will each take 15 percent, and China Development Corp will have five percent.

The second pact with several local downstream petrochemical firms and Indonesia's Maspion Group names them as partners to establish plants along with CPC's Indonesia project.

The Taiwan partners included Union Petrochemical, Grand Petrochemical Corp, Taiwan Synthetic Rubber Corp, Formosa Union Chemical, Chi Mei Industrial and Yuen Liang Industrial.

Under plans announced by CPC in August 1995, construction of the No. 2 cracker in Indonesia would begin in 1998. It would have annual production capacity of 230,000 tons of ethylene.