MOSCOW (MRC) -- Pertamina (Persero) PT was forced to take its polypropylene (PP) unit in West Java, Indonesia off-line last weekend following an unspecified technical glitch at the upstream RFCC unit that causes a disruption of the propylene feeds, reported CommoPlast with reference to market sources.
It is expected that the PP line would remain shut for about 12 days.
The RFCC unit produces 45,000 tons of propylene annually while the PP plant has a capacity of 45,000 tons/year.
“Due to the technical difficulties, the producer has to reduce the contract allocation to local buyers. This might continue to support the current firming trend into July,” a distributor added.
As MRC informed earlier, in May 2016, PT Pertamina and Russia’s Rosneft OAO signed a cooperation agreement that includes a plan to build a new oil refinery in the Southeast Asian nation. Pertamina, which hasn't built a new refinery since 1997, will be the majority shareholder in the facility at Tuban, East Java. The two companies may invest USD12 billion to USD13 billion in the refinery project which includes a petrochemical unit, Dwi Soetjipto, president director of Pertamina, told a press conference after signing the accord.
According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).