No2 cracker

10 November 1997 00:00  [Source: ACN]

THE immediate effect of the Peni restructuring has been to clarify the likely progress towards the second cracker investment at Merak.

BP Chemicals announced that the restructured Peni will proceed with a US$800m-1bn, 900 000 tonne/year ethylene cracker to be located in Bojonegara, near Merak. Peni will also produce 400-500 000 tonne/year of propylene, 150-200 000 tonne/year of benzene and 250 000 tonne/year of C4s by end-2000 at the same location.

Up to 650 000 tonne/year of ethylene will be transported 12 km via pipeline to Peni's PE facility in Cilegon.

Salim affiliate styrene producer Styrindo Mono Indonesia (SMI) and Salim subsidiary ethylene dichloride producer Satomo Indovyl Monomer (SIM) will each offtake 100 000 tonne/year of ethylene by pipeline.

The remaining 50 000 tonne/year of ethylene may be sold to vinyl chloride monomer producer Asahimas Subentra Chemical, and ethylene oxide and ethylene glycol producer GT Petrochem Industries.

Salim is expected to offtake all the benzene product. SMI will have a 250 000 tonne/year benzene requirement and Salim subsidiary Unggul Indah Corp will have a 100 000 tonne/year benzene requirement.

Salim's PP project will offtake up to 250 000 tonne/year of propylene. The balance could be sold to TriPolyta or exported. All the C4s will be sent by pipeline to the Chandra Asri-BP C4s complex, which will also use Chandra Asri's C4s stream.

The Penanaman Modal Dalam Negeri licence for 100% Indonesian ownership which Salim had obtained from the Badan Koordinasi Penanaman Modal will be transferred to Peni and converted to a Penanaman Modal Asing licence, which includes foreign ownership (ACN 28 July, p23).

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 18 January 2010)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly