MOSCOW (MRC) -- Thailand’s PTT Global Chemical Public Company (PTTGC) and Indonesia’s Pertamina have signed a Heads of Agreement (HoA) this week to jointly invest up to USD5bn in a giant petrochemical complex in Indonesia. The facility will be operational by 2017, said Seashipnews.
Karen Agustiawan, Pertamina’s ceo, stated that, "Due to promising demand of petrochemicals in Indonesia and Pertamina's huge potential to integrate refining and petrochemical business, we have set our petrochemical business as one of Pertamina's growth pillars. We have chosen PTTGC based on the fact that both of us are respected companies that represent our own countries, Indonesia and Thailand, in each of their respective business sectors."
The complex will manufacture olefins and polymer units.
As MRC wrote earlier, PTT owns the largest petrochemical facilities in Thailand, with an annual capacity of 8.2 million tons, using advanced technology and high energy efficiency. Pertamina has the largest oil refinery assets in Southeast Asia.
The facility will be built near one of Pertamina’s existing oil refineries in Balongan, West Java; Plaju, South Sumatra; and Tuban, East Java. The company has not yet decided which location to use.
Hanung noted that Pertamina accounts for 10 % of the petrochemical market in Indonesia. Due to low domestic refinery capacity, it imports around USD5 billion worth of petrochemicals a year.
Pertamina’s net income climbed 26% to Rp. 25.9 trillion (USD2.7 billion) last year.