CPC Corp, Pertamina mull new naphtha cracking plant

06 Jun '18

1 min read

Courtesy: CPC Corporation, Taiwan

CPC Corp, Taiwan’s state-owned oil company, and PT Pertamina, Indonesia’s state-owned oil and gas company, are considering establishment of a joint venture to build a new naphtha cracking plant in Indonesia. Pertamina has proposed four possible locations for the new facility and the Taiwanese firm is expected to send a team for inspection of these locations.

The proposed plant will have a capacity to produce 1 million metric tons of ethylene per year, according to CPC, Taiwanese media reports said.

CPC is likely to invite investment from Taiwanese companies in the new project through a public bidding process, according to the company’s vice president Huang Jen-hung. An assessment report on the project is expected to be completed by November-end this year.

Pertamina had earlier backed out from buying CPC’s Kaohsiung naphtha cracker, citing in part the plant’s relatively small capacity of 500,000 tons, compared to 1 million tons generated by its global competitors. Pertamina had also rejected a plan to relocate the entire Kaohsiung plant to Indonesia.

CPC has now initiated a plan to sell the Kaohsiung facility in full or in part by public tender. (RKS)

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