Indo Thai Trading, Pertamina and PTT JV, officially starts operation
Thursday, August 14 2014 - 12:39 PM WIB
The incorporation of ITT is one of the significant milestones in the implementation of joint cooperation between the two leading petroleum and petrochemical companies in the ASEAN region which was signed on end of 2013, the firm said in a statement.
ITT was established to serve the great demand of Indonesian polymer market in line with the plan of both firms to jointly develop a world-scale Integrated Petrochemical Complex, which will be on stream by 2019. The integrated complex itself is planned to be built in Balongan, East Kalimatan with polyolefin (polyethylene and polypropylene) production capacity of approximately 1.2 million tons per year and other petrochemical derivatives i.e. MEG, butadiene, pygas production capacity of nearly 1 million tons per year. Marketing and sales of all production from this complex will be conducted by ITT as a trading arm.
Prior to the completion of the petrochemical complex, ITT was granted by Pertamina and PTTGC, an exclusive right to distribute in Indonesia to sell their polyethylene and polypropylene products. Nevertheless, outsourcing products from other third parties to diversify its portfolios is also on ITT's plan.
Marketing and Commercial Director of PT Pertamina (Persero), Hanung Budya, said: "The petrochemical market in Indonesia is very promising, in 2025, it is estimated that the value of this market is around US$24-30 billion. Now is the time for us to seize these opportunities, with this strategic partnership with PTTGC-Thailand as one of the leading polyolefin producer in the ASEAN region, we firmly believe that this collaboration will be very promising in the future."
Bowon Vongsinudom, President and CEO of PTT Global Chemical said: "Today's launching is another significant advancement of cooperation between Pertamina and PTTGC. With support from PERTAMINA and PTTGC and the two companies at the forefront of products variety and supply consistency, skillful product development and technical support, as well as market expertise, I have a strong confidence that ITT will have a great success in satisfying customers in Indonesia territory. Also it will be the foundation, set in place to grow and be ready in time for the developing world class petrochemical complex inauguration in Indonesia."
Apart from recruiting professionals, ITT's team is filled with the experienced industry experts from the two leading refineries and petrochemical firms. This ideal combination plus its prudent operation competitive edges shall bring out the best of ITT to meet customer expectations and beyond.
Pertamina owns and operates 5 refineries throughout Indonesia. With the total capacity of around 1 million barrels of oil per day, it is ranked the 5th largest in Asia. In this regard, it has tremendous potential to integrate refinery and petrochemical business hence adds more values to the natural resources of Indonesia. With these advantages, Pertamina is determined to be a major player in Indonesia as well as in the region.
PTT Global Chemical , as chemical flagship of the PTT Group, with the combined chemical / petrochemical capacity of 8.72 million tons per year and crude oil / condensate distillation capacity of 280,000 bpd. The Company has been expanding its business into the specialties and green chemicals through a number of overseas strategic acquisitions. Such investments also clearly represent PTT Global Chemical's growth aspiration to expand its business internationally.
Editing by Johannes Simbolon