Project Profile
Value: US$4 billion
Location: Java, Indonesia
Production: 1 million tonnes per year (t/y of ethylene and propylene, 400,000 t/y of polyethylene (PE) and polyvinyl chloride (PVC) and 350,000 t/y of polypropylene (PP)
Start-up Year: 2018
PTT Global Chemical plc (PTTGC) and Pertamina are in final talks to establish a joint venture to build from greenfield a world-scale petrochemical complex in Java, Indonesia. This process is following up a heads of agreement (HOA) signed earlier in April 2013 between the both companies to start shaping the guidelines of such alliance. This project is popping up as priority for the Indonesian Government in order to meet its domestic demand for plastics and fibers that require today to be imported. A part of this oil and gas production could well be allocated to feed local refineries and petrochemical complex. For this Java petrochemical complex, PTTGC and Pertamina are planning to invest US$4 billion capital expenditure. According to the terms of the HOA signed in April, the joint venture between both companies should be based on: PTTGC 51% and Pertamina 49%. This split of the working interests may evolve in the future as both partners are currently for third parties to join this first Indonesian Petrochemical Complex project.
From the first conclusions of the feasibility study, the Java Petrochemical complex, should include:
- Refinery
- Olefins plant
- Downstream polymers units
Based on this architecture, PTTGC and Pertamina are considering to produce:
- 1 million tonnes per year (t/y of ethylene and propylene
- 400,000 t/y of polyethylene (PE) and polyvinyl chloride (PVC)
- 350,000 t/y of polypropylene (PP)
At the stage of the feasibility study, it is still unclear what feedstock should be selected to supply the Java Petrochemical Complex. Originally the project was thought with a 1 million t/y naphtha cracker, but the competitive gas prices and the development of the upstream projects in Indonesia may motivate PTTGC and Pertamina to evaluate mixed cracker solution. If themixed cracker should increase costs and the complexity of the project, in compensation it will give more flexibility to adjust production according to naphtha or ethane feedstock availability or prices and to the portfolio and petrochemical products to be deployed downstream. PTTGC and Pertamina are planning to complete the feasibility study early 2014 in order to move on the front end engineering and design (FEED) in following so that Java Petrochemical Complex project could come on stream in 2018.
Operators:
PTT Global Chemical plc (PTTGC): Operator with 51% interest
Pertamina: 49% interest