02/24/2011

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INDONESIA: Chandra Asri expanding PP, PE units and plans future ethylene, PE increases

Chandra Asri Petrochemical (CAP) said it expects to complete debottlenecking projects at its Banten, Indonesia, polypropylene (PP) and polyethylene (PE) facilities this year.

A PP expansion to 480,000 t/y from 360,000 t/y is due to be completed in the second quarter, said CAP, which was established as a result of the recent merger of Tri Polyta and Chandra Asri. The total cost of this project is $30-million.

CAP also plans by the fourth quarter of this year to invest $5.5-million to increase the capacity of its PE facility to 336,000 t/y from 320,000 t/y currently.

Over the "medium term,” the company expects to spend about $230-million to expand the capacity of its ethylene cracker to 1-million t/y from 600,000 t/y. The production, intended to satisfy domestic demand, would be based primarily on naphtha feedstock, with condensates and liquefied petroleum gas as alternatives.

Also over the "medium term” and in order to "optimize” the use of the excess ethylene from the expanded cracker, CAP plans a further 200,000-t/y expansion of its PE plant to a capacity of 536,000 t/y. Estimated cost of this project is $60-million.(Syed Rashid Ali, Karachi, Pakistan)

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