Pertamina wants market price for naphtha supply to Chandra Asri

State oil and gas firm Pertamina said on Monday it would be willing to supply naphtha to petrochemical giant PT Chandra Asri Petrochemical Center (CAPC) only at market price and under short-term contract, Koran Tempo daily reported on Tuesday.

?We just want business negotiations,? said Pertamina upstream director Muchsin Bahar.

Muchsin was commenting on the recent request from Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti that Pertamina supply adequate volumes of naphtha to CACP which is currently trying hard to reduce its dependence on imported products.

Muchsin said his company could not supply naphtha to CAPC in big volumes because Pertamina also needed the commodity to produce unleaded fuels for the domestic market.

He added Pertamina would have to build naphtha plants so it could supply the commodity to CAPC.

The government owns 25.8 percent of CAPC, while the greatest portion of the remaining balance goes to tycoon Prayogo Pangestu. (*)