13 May 1996 00:00 [Source: ACN]
CHINESE Petroleum Corp (CPC) has signed preliminary agreements with shareholders and downstream investors for the cracker it is proposing to relocate to Indonesia.
The 230 000 tonne/year cracker is expected to be relocated to Gresik in East Java in 1997, with production to begin in 1998.
Two agreements were signed last week, one for the cracker joint venture and the other for the downstream partnership.
Under the joint venture agreement, CPC will hold a 30-35% share in the cracker, with Graha Centre Mine and the Maspion Group holding a total of 30-35%. The remainder will be held by Union Petrochemical Corp (UPC) (15%), Oriental Union Chemical (15%) and China Development Bank (5%).
Details of the agreement for downstream partnership were not available as ACN went to press. However, downstream investors will include Taiwanese companies Chi Mei, Taiwan Synthetic Rubber, Formosa Union Chemical, Grand Pacific Petrochemical and Yuan Liang Industrial.
Chi Mei is studying 350 000 tonne/year of styrene and is also considering polystyrene production. The company intends to offtake 110 000 tonne/year of ethylene from the cracker, a Chi Mei told ACN. But a source involved in the project believes that the CPC cracker will not supply this quantity and some will have to be imported. Chi Mei is considering Mobil-Badger and Monsanto-Lummus processes for the styrene plant.
UPC may make EDC and VCM for the first time, and produce PVC and possibly SBR. It may partner the Maspion Group for EDC, VCM and PVC, a UPC official said.
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