Indonesia's Chandra Asri signs MoU for 250,000 tonne/year PP plant

12 December 2012 17:04  [Source: ICIS news]

SINGAPORE (ICIS)--Indonesia’s sole cracker operator, Chandra Asri, has signed a memorandum of understanding (MoU) with local state-owned energy firm Pertamina to build a 250,000 tonne/year polypropylene [PP] plant at Balongan, West Java in Indonesia by 2015, a Chandra Asri source said on Wednesday.

The plant will receive propylene feedstock from Pertamina's existing residual catalytic cracker (RCC) at Balongan, the source said.

Pertamina used to supply propylene from the Balongan RCC to Polytama Propindo, another local PP producer, but the feedstock supply was stopped months ago because of payment issues between the parties, a local industry source said.

Hence, Pertamina has spare propylene supply to support the proposed PP joint venture with Chandra Asri, the industry source said.

Chandra Asri currently operates three PP plants in West Java, Indonesia with a combined capacity of 480,000 tonnes/year, according to ICIS data.

By: Chow Bee Lin
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