LG plans petrochemical project in RI
Thursday, July 6 2017 - 03:35 AM WIB
South Korea?s LG International plans to develop a petrochemical project in Bintui, West Papua Province, in partnership with local company PT Duta Firza.
This was said by Minister of Industry Airlangga Hartarto in a statement issued following a meeting on Monday with CEO of LG International, Song Chi Ho in Seoul.
He said that the planned petrochemical plant will require investment of US$1.3 billion and is designed to produce 1 million tons of methanol per year. ?The project will require natural gas of 90 mmscfd with expected price of US$1 per mmtbtu. LG is currently conducting feasibility study in Bintuni,? Airlangga said in the statement.
The ministry noted that Bintuni offers petrochemical investment potential due to existing gas reserves in the are operated by two companies, namely BP Tangguh of about 23.8 trillion standard cubic fee (tscf), and Genting Oil Kasuri Pte Ltd of 1.7 tscf.
Aside from LG, other investors which have expressed interest to develop petrochemical projects in Bintuni include Ferrostaal, Asahi Kasei Chemicals, Mitsui, and Sojitz, the statement said.
Editing by Reiner Simanjuntak