BP may build petrochemical complex in Papua

BP Plc has expressed its interest to develop a petrochemical complex in Papua to take advantage of the abundant gas reserves at the company?s Tangguh gas field in the province.

Dedi Mulyadi, the director general for development of industrial areas at the industry ministry, said in Jakarta on Thursday that BP?s interest was in line with the government?s plan to develop a petrochemical industry cluster in Papua.

?BP will take advantage of Tangguh gas field and develop a petrochemical industry,? he said as quoted by Bisnis Indonesia today.

The government is still preparing a master plan for the development of the petrochemical industry in the province.

According to a study conducted by the industry ministry, the initial stage of the development of the petrochemical complex will require gas supply of about 382 million standard cubic feet per day (mmscfd).

The supply will be needed to provide raw materials for two urea plants with a capacity of 3,500 tons a day and two ammonia plants with a capacity of 2,000 tons a day, and a methanol plant, Panggah Susanto, the director general of manufacturing industry.

He said that a number of companies from Germany, South Korea and Japan have expressed their interests to build a methanol plant in Tangguh. The construction of the methanol plant will need at least US$800 million in new investment while for a polypropylene plant will require investment of about $500 million.

Companies which are interested in building urea and ammonia plants include state fertilizer producer PT Pupuk Sriwijaya (Pusri). Panggah said investment for the construction of urea and ammonia plants would reach about US$2 billion. (*)