By Malini Hariharan

Honam Petrochemical’s plans for Indonesia appear to be progressing.

Company sources told ICIS news yesterday that a feasibility study is underway for a $4-5bn petrochemical complex in Southeast Asia with Indonesia the most likely location. The study is likely to be completed by early 2013.

Meanwhile, Indonesia media quoted senior managing director of business development, Kim Gyo-hyun, as saying that Honam, part of the Lotte Group, has selected a site at Cilegon in Indonesia. The report also said that the complex would include a 1m tonnes/year naphtha cracker and plants for 600,000 tonnes/year of polyethylene (PE), 600,000 tonnes/year of polypropylene (PP), 700,000 tonnes/year of monoethylene glycol and 140,000 tonnes/year of butadiene. He expected the project to be completed by 2016.

But company sources that ICIS spoke with declined to confirm project details.

Feasibility studies for the project are ongoing and the company has not decided on the configurations of the new complex, which will likely include a cracker and other downstream units, the Honam official said.

“The specifications for the new complex will highly depend on EPC [engineering, procurement and construction] contract costs as well as governmental tax benefits,” the official added.

A project in Indonesia makes sense given the country’s growing deficit for petrochemicals, especially polymers. But government support, which has been missing in the past for petchems, is important.

PREVIOUS POST

Methanol moves

09/02/2012

By Malini Hariharan Recent moves by methanol majors to boost their capacities ha...

Learn more
NEXT POST

It All Depends On Your Time Frame

13/02/2012

By John Richardson HOW long a recovery lasts is always relative to your investme...

Learn more
More posts
BASF’s shocking Q2 results should have been no shock at all
09/07/2019

y John Richardson NOBODY should be surprised by the BASF results for Q1 2019 where, on a year-on-yea...

Read
Multiple trade disputes and the risks for the US PE industry
03/07/2019

By John Richardson FALLING out with a trading partner as big as China is problematic enough. But the...

Read
China PE overstocking at nearly a million tonnes as demand weakens, competition intensifies
02/07/2019

By John Richardson MEASURING petrochemicals and polymer inventory levels in China with any reasonabl...

Read
China petrochemicals recovery on G20 trade war progress will be shortlived
30/06/2019

By John Richardson China petrochemical and polymer price spreads over naphtha feedstock costs will r...

Read
President Trump’s Vietnam warning threatens more polyethylene disruptions
27/06/2019

Just to stress  that, as always, what follows are my own personal views and not those of ICIS By Jo...

Read
US LLDPE imports and the impact on European petrochemicals
26/06/2019

  By John Richardson EUROPEAN linear-low density polyethylene (LLDPE) markets have yet to feel ...

Read
Southeast Asia PE spreads further underline weak demand, but trade talks promise rebound
25/06/2019

By John Richardson THE GOOD news today is that the US and China have agreed to resume trade talks. P...

Read
Global polyethylene: Supply is not the problem, it is demand
24/06/2019

By John Richardson WHEN people talk about supply it is very often because it is much easier to quant...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more