April 7 (plastemart) -- In a move that will help Indonesia reduce its dependence on foreign refineries to produce naphtha (crucial as feedstock for high octane gasoline), state oil and gas firm PT Pertamina will collaborate with domestic and foreign petrochemical producers. The joint forces will construct three refineries within 10 years as part of a US$15 bln mega project. Each refinery is estimated to cost up to US$5 bln and will have a total combined capacity of 900,000 bpd of naphtha.
The first project will commence this year for a refinery in Cilegon, Banten. The partners for the project comprise PT Chandra Asri, Malaysia's PT Titan Petrochemical, PT Trans Pacific Petrochemical Industry, PT Tri Polyta and PT Polytama Propindo. The other two new refineries will be built in East Kalimantan's Bontang and East Java's Tuban. Indonesia's number one ethylene maker Chandra Asri has a long term plan to invest US$2 bln on expansion of its oil refinery unit, including US$1 bln on a naphtha cracking unit.