PTT Global Chemical seeks partner for RI petrochemical project
Thursday, August 14 2014 - 01:24 AM WIB
PTT Global is planning to triple the crude processing capacity of the project to 360,000 barrels a day (bpd), which would boost the estimated investment in the complex to as much as US$8 billion, chief executive Bowon Vongsinudom told reporters Wednesday.
PTT Global's initial plans with Pertamina had called for an investment of $5 billion in the petrochemical complex at Balongan, Central Java.
The investment is part of PTT Group's plan to boost its presence in Southeast Asia as domestic demand slows after several months of political unrest that weakened the economy.
"The estimated investment is expected to rise to $7 billion-8 billion. It's huge money. PTTGC will focus on petrochemicals and we need to seek a partner to strengthen the refining part," Bowon said, adding the refinery will help supply feedstock to the petrochemical plant.
The company is studying details on how to finance the project and potential partners, a process it expects to conclude in early 2015. It aims to begin operations at the Indonesia complex in 2020, delayed from a previous completion target in 2018, Bowon said.
The complex will include a 1 million ton olefins plant and a downstream polymer facility, and will supply the Indonesian market during initial stage of operations, the Thai firm said in a statement.
PTT Global, 49 percent owned by the country's top energy firm PTT Pcl, signed separate deals in 2013 with Pertamina and China's Sinochem Group to jointly develop petrochemical businesses in the two countries. (*)