Taipei, State-owned oil company CPC Corp, Taiwan said Sunday its Indonesian partner PT Pertamina is looking to team up with the Taiwanese company to establish a naphtha cracking plant in Indonesia after rejecting a plan to relocate CPC's closed Kaohsiung naphtha cracker to Indonesia.
PT Pertamina, Indonesia's state-owned oil and gas company, decided that the move was too costly and felt funds devoted to the CPC plant could be better used to build a new naphtha plant, CPC said last month after the plan fell through.
CPC has now initiated its backup plan to sell the closed naphtha cracking plant in full or in part by public tender, the company said.
It will take an additional investment of US$352 million to construct a new plant, compared with the expense of acquiring the secondhand facility, with an annual capacity of 500,000 metric tons of ethylene, from CPC.
The Indonesian company is now looking to establish a joint venture with CPC to build a new facility in the country able to produce 1 million metric tons of ethylene per year, according to CPC.
PT Pertamina has proposed four possible locations for the new naphtha cracking plant, CPC Vice President Huang Jen-hung (???) said, adding that the Taiwan company will send a team on an inspection tour to Indonesia in the near future.
CPC is expected to solicit Taiwanese companies interested in investing in the new facility through a public bidding process, according to Huang.
An assessment report on the construction of the new naphtha cracker is expected to be completed around late November, Huang said.
Source: Focus Taiwan News Channel