Chandra Asri, Vopak team up to build Banten LPG terminal
Monday, February 14 2011 - 05:21 AM WIB
Both companies has signed an MoU on January 11, 2011 and will spend US$150 million to develop the project, Detik.Com reported on Monday, citing press release from CAP.
CAP president Erwin Ciputra said that technical, environmental studies along with permitting process are underway with construction is expected to be started in 2011 and operations planned in 2014.
The terminal is expected to be able to distribute 1 million tonnes of LPG per year.
According to Erwin, LPG from the terminal will be partly used by CAP as alternative feed for its olefin plant. Currently the plant requires feed of 1.7 million tonnes of naphtha per year, 10-15 percent of which could be substituted by LPG, he said adding that the LPG supply will give greater feed supply flexibility to CAP.
Some of the terminal?s capacity will also be used to supply LPG to other industrial customers in Banten province, he said.
The LPG terminal project is part of CAP?s plan to increase production capacity of polypropylene to 480,000 tonnnes per annum from 360,000 tonnes currently; ethylene to 1 million tonnes per annum from 600,000 tonnes currently and polyethylene to 540,000 tonnes per annum from 320,000 tonnes.
CAP is an integrated petrochemical firm controlled by tycoon Prayogo Pangestu. (*)