KMIN will establish petro-chemical plant with investment of $7 billion

PT Kilang Minyak Intan Nusantara (KMIN) plans to develop a petro-chemical plant with investment of US4 7 billion near its planned oil refinery complex to be built in Parepare, Sulawesi, Bisnis Indonesia reported on Tuesday.

Mappasulle, the president of PT Intanjaya Agromegah Abadi (IAA), which owns 20 percent stake in PT KMIN, said that the construction of the petro-chemical plant would be part of the oil refinery project to be developed in Parepare.

"At present, we are preparing the construction of oil refineries and after that we will go ahead with the petro-chemical project," he said, adding the total investment would reach about $7 billion, part of the $10 billion allocated for the whole Parepare project.

PT KMIN recently announced that it had obtained approval from the Investment Coordinating Board (BKPM) to develop two oil refineries in Parepare and on Batam island. The total investment for the construction of the two oil refinery plants, according to the company, would reach about $6 billion.

"The investment value of the planned two oil refineries will be about $3 billion each. Each plant will have production capacity of about 300,000 barrels of crude oil per day," Mappasulle said.

He said that the two plants were expected to start production by the end of 2004.

Fuel products to be produced by the new plants will include gasoline, aviation fuel, kerosene, Diesel oil, LPG, sulfur, asphalt and naphtha.

KMIN is 20 percent owned by PT IAA, 40 percent of Saudi Arabia-based Al Banader International Group, and other 40 percent by China National Electrical Equipment Corporation/Investment

Pacific Inc./Lau Swee Seng (CNEEC/IPI/LSS). (*)