TPPI interested in producing fuel product for domestic

East Java-based petrochemical firm PT Trans Pacific Petrochemical Indotama (TPPI) is interested in producing fuel from its facilities for domestic market, an official at oil and gas downstream regulatory body BPH MIGAS said Tuesday.

?They (TPPI) are capable of producing about 2.7 million tons of fuel per year,? BPH MIGAS Chairman Tubagus Haryono said, adding that such a volume would enable Indonesia to reduce fuel imports as much as 50,000 barrels per day (bpd).

According to Tubagus, Indonesia is currently importing about 400,000 bpd of fuel products.

Tubagus said the government would able to save approximately US$2.5 billion per year if the plan can be realized.

Tubagus added that he would write a letter to Minister of Energy and Mineral Resources Purnomo Yusgiantoro about the possibility to supply condensate to TPPI?s plant facilities as feedstock.

TPPI has a combined capacity of 3.6 million ton per annum (TPA) of petrochemicals products, comprising 1 million TPA of aromatics (500,000 tons paraxylene, 200,000 tons benzene, and 150,000 tons toluene), 1 million TPA of naphtha, and 1.6 million TPA of kerosene and diesel.

At present, Pertamina has a 15 percent stake in the company. Tuban Petrochemical Industries (Tuban Petro) holds the other 59.5 percent, with Itochu Corp, Siam Cement Pcl and Sojitz Corp. controlling the remaining shares. (bernard/godang)