06 May 2010 09:12 [Source: ICIS news]
By Chow Bee Lin
SINGAPORE (ICIS news)--Indonesia’s PT Barito Pacific plans to build a 300,000 bbl/day refinery and a second 600,000 tonne/year naphtha cracker in Anyer, West Java, by the end of 2014, an official of the Indonesian Olefin and Plastic Industry Association (INAPLAS) said on Thursday.
Barito Group’s subsidiary, PT Chandra Asri, currently operates a petrochemical complex at Anyer comprising a 600,000 tonnes/year naphtha cracker and two polyethylene (PE) plants with a combined capacity of 300,000 tonne/year.
"Barito is trying to secure an off-take agreement for 300,000 bbl/day of crude from the ?xml:namespace>
The company was looking for local and foreign partners for the projects but the majority ownership was likely to be Indonesian, he said.
INAPLAS was the only industry representative appointed to advise the Indonesian government on petrochemical policies, and it was part of a committee formed to drive the proposed refinery and new cracker projects, Sadiman said.
The committee included representatives from the Ministry of Industry and Barito, he added.
"Barito has secured 400 hectares of land next to its existing petrochemical complex at Anyer for the proposed refinery and new cracker, and feasibility study for the projects was expected to be completed by June this year,” he said.
The Indonesian government had pledged support for the proposed projects but the exact incentives were still being discussed, said Sadiman.
"One of the incentives being discussed was for the government to help finance the projects by absorbing the loan interests in the first few years,” he said.
"According to our initial estimation, it’d cost around $5bn to build the refinery,” he added.
Barito Pacific was not immediately available for comment.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|