Vitol Singapore ready to provide capital for E. Java petrochemical project
Monday, January 10 2005 - 02:55 AM WIB
Singapore unit of Dutch energy trader Vitol has agreed to provide US$40 million in working capital for East Java Petrochemical firm PT.Trans Pacific Petrochemical Indonesia ( TPPI), Bisnis Indonesia newspaper reported in its Monday edition.
According to the daily, TPPI needs $100 million in working capital. The remaining balance will be sought from financial institutions. "This project is very profitable, banks are queuing to offer loans,” said Muhammad Syahrial, president director of PPA, which has 60 percent stake in TPPI.
TPPI has commenced construction of giant petrochemical complex in Tuban since April last year. The plant will produce some 500,000 tons of paraxylene per annum.
State oil and gas company has 15 percent stake in the project, and would act as crude and condensate supplier for the project as well as offtaker of fule products produced by the plant. (*)