Indonesia’s Kaltim Methanol on track to shut Bontang plant in Nov

05 October 2012 07:28  [Source: ICIS news]

SINGAPORE (ICIS)--Indonesia’s Kaltim Methanol Industri (KMI) is on track to shut its 660,000 tonne/year methanol plant at Bontang in eastern Kalimantan for maintenance, a company source said on Friday.

The plant will be shut for 1.5 months from the first week of November, the source said.

Some spare parts still need to be delivered, “but for sure it [maintenance] will be in first week of November”, the source said.

KMI is the sole methanol producer in Indonesia.

Methanol demand in the country is stable, the source said.

Cargoes on a formula basis in Indonesia were heard discussed at a 2.0-2.5% premium to current spot published prices.

KMI is jointly owned by Japan’s Sojitz (85%), Indonesia’s PT Humpuss (10%) and Daicel Chemical Singapore (5%),  based on information on the company’s website.

Sojitz does the overseas marketing for 70% of the methanol produced by the company, while the remaining 30% is marketed in Indonesia by Humpuss.

Most methanol buyers in Indonesia are formaldehyde makers, which produce adhesives for plywood and other wood processing industries.

By: Heng Hui
+65 6780 4359

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