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Argus Media Limited

10/15/2021 | News release | Distributed by Public on 10/14/2021 23:36

Indonesia's Chandra Asri eyes feedstocks from Aramco

Indonesian petrochemical producer Chandra Asri has signed an initial deal with Saudi Arabia's state-controlled Aramco Trading (ATC) to explore potential feedstock supplies for its planned Chandra Asri Perkasa (CAP2) petrochemical complex.

Chandra Asri and ATC are looking to the 12 October initial agreement to lead to a long-term partnership to ensure constant feedstock supplies to the cracker complex at Cilegon in west Java.

CAP2 comprises a 1.1mn t/yr naphtha cracker capable of producing up to 1.1mn t/yr of ethylene and 600,000 t/yr of propylene. The complex will also house a 300,000 t/yr low-density polyethylene (PE) plant, a 450,000 t/yr high-density PE plant and a 450,000 t/yr polypropylene (PP) plant. Its start-up is planned for 2025-26, according to Chandra Asri. It currently operates a 900,000 t/yr naphtha cracker, a 736,000 t/yr PE plant and a 590,000 t/yr PP plant at Cilegon.

Chandra Asri in July this year selected Thai Oil, the downstream arm of Thailand's state-controlled PTT, as its new strategic investor. Thai Oil is expected to help fund CAP2 with Chandra Asri's major shareholders, Indonesia's Barito Pacific and Thailand's Siam Cement Group. Thai Oil has agreed to acquire a stake of up to 15.38pc in Chandra Asri.

Abu Dhabi's state-owned Adnoc in early 2020 also signed an initial agreement to explore naphtha supplies to Chandra Asri for use as feedstock at the producer's existing and new crackers.

By Yee Ying Ang