Indonesia’s TPPI plans aroms restart in Oct/Nov
05 August 2008 07:11 [Source: ICIS news]
SINGAPORE (ICIS news)--Indonesian aromatics producer Trans Pacific Petrochemical Indotama (TPPI) expects to keep its benzene and paraxylene (PX) plant idle until mid-October or early November despite having lifted a force majeure in May, company sources said Tuesday.
"The plant ran for about two weeks after the force majeure was lifted, but it is now down," said one of the sources who did not elaborate on the mechanical problem which brought down the facility at Tuban on Java island.
Another source confirmed the target restart date of "mid-October to early November", but added that "due to squeezed margins, we’re not supplying now and our customers understand that."
Benzene margins were squeezed between May and June, with prices at $1,300/tonne FOB (free on board) Korea, unable to cover crude oil and naphtha prices at record highs. Similarly PX was at $1,705/tonne CFR (cost and freight) Taiwan, but still could not cover costs.
"We’re now waiting for the government approval to restart, and we’d likely produce more gasoline products as that’s what’s needed in the country now," said the first source.
TPPI’s aromatic complex can produce 45,000-50,000 tonnes/month (540,000-600,000 tonnes/year) of paraxylene (PX) and 30,000-33,000 tonnes/month of benzene, as well as 120,000 tonnes/year of orthoxylene (OX).
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By: Salmon Aidan Lee
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