INDONESIA: Chandra Asri mulls olefin increase; considers project funding options

CAP currently has the capacity to produce 600,000 t/y of ethylene, 320,000 t/y of propylene, 320,000 t/y of polyethylene, 480,000 t/y of polypropylene and 340,000 t/y of styrene.  The plan envisions increasing ethylene capacity to between 800,000 t/y and 1-million t/y.  Details on downstream expansion plans were not given.

SCG and Barito are considering a public offering on the Indonesian stock market to finance the project, said a local source citing SCG President Cholanat Yanaranop.  Other sources of project financing could include borrowing or an increase in registered capital.  The two partners expect to make a decision early next year, with plans for increased production to be realized in 2013.

Earlier this year, SCG acquired a 30 % interest in CAP for $442-million. Barito holds 64.87 % and 5.13 % is held by the public.

Source: Weekly "PetroChemical News", Durham, NC, USA; 5 Dec 2011(Syed Rashid Ali, Karachi, Pakistan)