12 March 2013 02:25 [Source: ICIS news]
SINGAPORE (ICIS)--German engineering firm Ferrostaal said late on Monday that it has signed a letter of intent with the Indonesian government to develop a new petrochemical complex in the West Papua region of Indonesia.
The project will be able to produce methanol, propylene and polypropylene (PP) from natural gas and is expected to go into production in the Teluk Bintuni regency in 2019, the company said in an emailed statement.
Once completed, the complex is expected to produce around 400,000 tonnes/year of PP, according to Ferrostaal.
The plant’s PP output as well as the by-products petrol and liquefied natural gas (LNG) will be sold in the local market to meet growing local demand, Ferrostaal said.
The complex will exclusively use local natural gas from the reserves in West Papua, which have the potential to supply the plant for at least 25 years, the company added.
“Ferrostaal’s role in the project is that of project developer and investor, in addition to which it will be responsible for structuring the investments planned by the foreign and local Indonesian investment partners,” it said.
The use of end-products from the new complex in the domestic market will help Indonesia save up to $600m (€462m) annually on imports, according to Ferrostaal’s managing director Klaus Lesker.
Financial details of the new complex were not disclosed in the statement.
($1 = €0.77)
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