PTT Global Chemical Pubilc Company Limited (PTTGC) and PT Pertamina (Persero), the Indonesia National Oil Company announced, the signing Head of Agreement (HoA) for the joint invest of its USD 4-5 billion world scale Petrochemical Complex in Indonesia which is targeted to start the commercial operation by 2017.
PTTGC, the Thai leading Petrochemical producer, and Pertamina, the Indonesia national oil company, established its formal partnership by entering into the HoA for building Petrochemical Complex in Indonesia witnessed by the honorable guests, Mr. Prasert Bunsumpun, Chairman of PTTGC and Dr. Pailin Chuchottaworn, President and CEO of PTT Public Company Limited.
In next step, the two companies will undertake detailed feasibility studies related to future business development plan.
Karen Agustiawan, Pertamina President Director and CEO, stated that "Due to promising demand of Petrochemical in Indonesia and Pertamina's huge potential to integrate refining and petrochemical business, we have set Petrochemical business as one of Pertamina's growth pillar. We have choose PTTGC is based on the fact that both of us are respected companies that representing each our own country, Indonesia and Thailand, in each of their respective business sector"
"We estimated an investment of about $4-$5 billion on this complex consisting of world scale Olefins plant and downstream polymer units" added CEO of Pertamina.
It is targeted that the joint venture between Pertamina and PTT Global Chemical to be set up at the end of 2013 to accelerate the implementation of business plan and meet the complex start up by 2017.
Mr. Anon Siriseangtaksin, Chief Executive Officer - CEO, PTT Global Chemical stated that "We, PTT Global Chemical, are very proud to be selected by Pertamina on this very important project. We believe that Petrochemical business shall contribute significantly to Indonesian economic and push forward the ASEAN to become the major Petrochemical hub".
"This collaboration well aligns with PTT Global Chemical growth aspiration in strengthening our core business as well as extending the footprint in Southeast Asia." said Mr. Anon Siriseangtaksin.
Pertamina owns and operates 5 refineries throughout Indonesia. With the total capacity of around 1 million Barrel Crude Oil Per Day, it is ranked the 5th largest in Asia. In this regard, it has tremendous potential to integrate refinery and petrochemical business hence adds more values to the natural resources of Indonesia. With these advantages, Pertamina is determined to be a major player in Indonesia as well as in the region.
PTT Global Chemical , as a Chemical Flagship of PTT Group with the combined chemical / petrochemical capacity of 8.45 million tons per year and crude oil / condensate distillation capacity of 280,000 barrels per day.
The Company has, recently, been expanding its business into the specialties and green chemicals through numbers of oversea strategic acquisitions. Such investment also well represents PTT Global Chemical's growth aspiration to expand its business internationally.