APIC '06: Chandra Asri plans further C2 capacity hike

12 May 2006 05:40  [Source: ICIS news]

BANGKOK (ICIS news)--Chandra Asri, Indonesia’s sole cracker operator, could add another 50,000 tonne/year of ethylene capacity to its cracker at Merak, west Java, beyond its current expansion plans, a company source said on Friday.

The company already plans to raise the plant’s capacity by 70,000 tonne/year to 590,000 tonne/year by the second-half of 2007, after adding a new furnace during a 40-50 day shutdown in November.

The furnace, however, can add 120,000 tonne/year of ethylene capacity in total and the company is increasing it by only 70,000 tonne/year this time due to the compressor’s limitations, the source said on the sidelines of the 27th Asia Petrochemical Industry Conference (APIC) in Bangkok, Thailand.

He said that the company is studying whether to change the compressor to make full use of the furnace. A decision is likely by the second half of 2007.

As part of its expansion plans, Chandra Asri will extend its ethylene pipeline to units operated by downstream producers Styrindo Mono Indonesia  (SMI), Continental Solvindo and Polychem Indonesia. It eventually hopes to supply 50% of these plants’ ethylene needs, said a second source

The company currently sends ethylene by vessel to these companies at a freight cost of around $42-50/tonne. The second source said that the pipeline would reduce this, though he could not give a figure.

By: Michael Urquhart
+65 6789 8828

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