Indonesian petrochem firm to expand naptha facility

chandraINDONESIA’s largest petrochemical producer, Chandra Asri Petrochemical, is investing US$380 million for its planned expansion its naphtha cracker facility in Banten as part of its efforts to improve sales in Indonesia and the Southeast Asia region.

Chandra Asri Vice President Paramate Nisagornsen, said they are seeking for a combination of loans and secondary stock offerings to finance the project, and thus finalising funding sources which are effective and efficient.

Recently, Chandra Asri has plotted a deal with Toyo Engineering Corporation to provide engineering, procurement, and construction works for the expansion, which is expected to increase its capacity for naptha by 40%. The facility is expected to come online by 2015.

The new facility will increase Chandra Asri’s capacity to produce ethylene from 600,000 tonnes to 860,000 tonnes per year. Its propylene production capacity will also increase to 470,000 tonnes from 150,000 tonnes.

Moreover, production of Pygas, used for gasoline blending will go up 400,000 tonnes annually from 120,000 tonnes.

With these developments, the firm is expected to bolster its capability in supplying propylene as raw material polypropylene, a plastic-based material for its plant, as well as securing Mixed C4 supplies for a butadiene plant operated at its subsidiary Petrochemicals Butadiene Indonesia.