SKK Migas, BP determine location for Ferrostaal?s petrochemical plant

By Febry Silaban

Upstream authority SKK Migas has held discussions with BP Berau Ltd, the operator of Tangguh LNG plant in West Papua, and German petrochemical firm Ferrostaal GmbH to find a suitable location in Papua for a petrochemical plant that will be built by the German company, according to a top official of SKK Migas.

?We've found the area, namely Onar," said SKK Migas' Head Amien Sunaryadi in Jakarta, adding that the petrochemical plant will get gas supplies from the third train that will be built at the Tangguh LNG plant in West Papua.

He added that Onar is a fairly flat land area.

Two year ago, Ferrostaal and IDX-listed PT Chandra Asri Petrochemical signed a memorandum of understanding (MOU) to build a methanol-based olefin production complex in Teluk Bintuni in West Papua, with a total investment amounting to US$1.89 billion. The petrochemical complex is expected to produce up to 400,000 tons of polypropylene and 175,000 tons of ethylene annually.

Editing by Johannes Simbolon