Pertamina, PTT Global team up in petrochemical venture

Indonesia?s PT Pertamina and Thailand?s PTT Global Chemical Public Company Limited (PTTGC) have signed a head of agreement (HoA) on the development of a petrochemical processing complex in Indonesia, with potential total investment of between US$4 and $5 billion.

The facility is expected to be ready for commercial operation by 2018 at the latest, according to a statement released on April 1 by Pertamina.

The HoA, which was signed in Bangkok, will pave the way for a joint feasibility study on the project as well as the establishment of a joint venture, said the statement.

Pertamina President Director Karen Agustiawan said that the facility will in part be comprised of world-class olefin and polymer refineries. Karen added that the joint venture is expected to be established by the end of 2013.

At present, Pertamina operates 6 crude processing facilities in Indonesia, with total production capacity of 1 million barrels per day. PTT Global Chemical meanwhile is a part of PTT Group that produces petrochemical products with a production capacity of 8.45 million tons a year.

Editing by Dadan Wijaksana