Indonesia strives to be self-sufficient in petroch

Indonesia strives to achieve self-sufficiency in olefins, aromatics and other petrochemical products by 2020

Indonesia strives to achieve self-sufficiency in olefins, aromatics and other petrochemical products by 2020

March 27, 2014

[China paint information] due to the possible further expansion of the gap in major petrochemical products, the Indonesian government recently announced that it will accelerate the development of the petrochemical industry by attracting foreign investment and other means, and strive to achieve ethylene and propylene by 2020, some of which are just deepening friendship Aromatics and other petrochemical products are self-sufficient

inaplas vice chairman suhat miyarso said at a seminar in Jakarta not long ago that at present, Indonesia is planning to build several petrochemical plants or expand production capacity to ensure the axial stress of the samples on the side. The purpose is that Indonesia will no longer need to import petrochemical products after 2020. According to its introduction, the relevant parties will expand the capacity of the existing five petrochemical plants located in Banten province and West Java province. For example, Japanese catalyst will increase its acrylic acid production capacity, Indonesian polychem Indonesia plans to expand its MEG unit production capacity in Merak, and Chandra ASRI Petrochemical (CAP) company plans to increase the production capacity of its naphtha cracking unit. It is said that these capacity expansion projects are expected to be completed next year

the Indonesian government has designated Banten Province, East Java province and East Kalimantan province to develop petrochemical industry clusters, of which Banten province will develop into an olefin industrial base, East Java province will develop into an aromatics industrial base, and East Kalimantan province will develop into a coal chemical industry base. Inaplas said that at present, some petrochemical projects are under construction or expansion. Indonesia's existing petrochemical production capacity is 3.9 million tons/year, while the demand is 4.3 million tons/year. The association said that in the next three to five years, the new petrochemical plants and ongoing expansion projects will increase Indonesia's petrochemical production capacity by 30% to 40%

in addition, some companies plan to build seven new petrochemical projects in Indonesia, including the naphtha cracking project of South Korea's Hunan Petrochemical Company in Banten. In addition, FREX will work with Chandra ASRI petrochemical in Indonesia to build a methanol to olefin (MTO) plant in Papua

in 2012, Hunan Petrochemical Company of South Korea determined the investment plan for the construction of petrochemical projects in Indonesia. The company has signed a memorandum of understanding with karakato steel, the Indonesian state-owned steel enterprise, which provides land for the petrochemical project. According to the plan, Hunan Petrochemical invested 5billion US dollars to build a large petrochemical project, which was started in the first quarter of 2013 and completed in 2016. It is reported that the project mainly includes 1million T/a ethylene and 550000 T/a propylene units, and the downstream units include 600000 T/a polyethylene, 600000 T/a polypropylene and 700000 T/a ethylene glycol, as well as a 140000 T/a butadiene unit with low industry concentration. Some naphtha raw materials required by the project will be imported, and the petrochemical products produced will give priority to the Indonesian market, with about 80% of the products for local consumers

Chandra ASRI, the only ethylene producer in Indonesia, has also confirmed that it will carry out ethylene capacity expansion and the construction of related propylene and butadiene derivatives projects, expand the company's ethylene capacity from the current 600000 tons/year to 100 million tons/year, and enhance the transformation and upgrading of traditional industries. At the same time, it will also use the translocation method to increase propylene capacity, and plans to build a new 1-butene production unit and related downstream units such as styrene butadiene rubber

PTT company of Thailand, the world's top ten ethylene producer, recently announced that it would jointly build large-scale petrochemical projects with Indonesia's state-owned Pertamina company. Recently, Indonesia's state-owned Pertamina announced in Jakarta that it plans to make a final investment decision on the proposed petrochemical project by 2015. The petrochemical plant may start operation in 2018. The project aims to meet 30% of the demand of Indonesian petrochemical market. It is said that the Indonesian petrochemical market will reach about US $30billion in 2018. The ethylene production capacity of the planned joint venture project exceeds 1million tons/year, with a total investment of US $4billion to US $5billion. Downstream devices are mainly high-density polyethylene and low-density polyethylene, monoethylene glycol and a methyl tert butyl ether plant. These new projects are expected to invest up to US $39billion and will be completed from 2017 to 2020

it is understood that in recent years, the average annual growth rate of Indonesia's economy has been maintained at more than 6%, and the middle-class population is increasing, making the demand for major petrochemical raw materials such as ethylene and propylene in Indonesia grow rapidly. At present, the main raw materials of Indonesia's petrochemical industry (including naphtha) are imported. The development of the country's oil processing and petrochemical industry is relatively lagging behind. Its crude oil processing capacity is about 50million tons/year, and its ethylene production capacity is about 600000 tons/year, while the demand for ethylene is more than 1million tons/year. As the country's economy continues to grow rapidly, the supply gap will further expand in the future