Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Energy  >> Chandra Asri to build naphtha refinery in 2018
NEW UPDATES Asean Affairs  10 March  2015  

Chandra Asri to build naphtha refinery in 2018

Indonesia: Petrochemical producer PT Chandra Asri Petrochemical (CAP) is conducting a year-long preliminary study to develop a mini-refinery in 2018, which is expected to ease the firm’s reliance on naphtha imports.

According to Suhat Miyarso, the firm’s vice president for corporate relations, the project will require investment amounting to US$740 million. “We are going to build a mini-refinery for naphtha production in 2018, with preliminary studies starting this year,” Suhat told reporters on the sidelines of a seminar in Jakarta, on Thursday.

Suhat said that the refinery would be built on 80 hectares of land near its existing facilities in Cilegon, Banten. It would also have a production capacity of 100,000 barrels of condensate per day, equivalent to the creation of 2.5 million tons of naphtha per year.

He added that from this amount, the firm would utilize around 1.3 million tons of light naphtha as feedstock for its olefin production, in an effort to reduce its annual inbound shipment of raw materials.

According to Suhat, who is also vice president of the Indonesian Olefin, Aromatics and Plastics Industry Association (Inaplas), CAP imports all 1.7 million tons of the naphtha it consumes every year, acquiring it from several Middle Eastern countries and Singapore.

To finance the study, the firm will use part of this year’s $250 million funds allocated for capital expenditure (capex), according to the corporate executive.

The capex will also be used to conclude the company’s $380 million naphtha cracker expansion project, which will increase the facility’s existing ethylene production capacity by 43 percent, from 600,000 kilotons of ethylene to 860,000 kilotons. The expansion is necessary to support the production of ethylene, propylene, pyrolysis gasoline and crude C4 — all use ethylene as their raw material.

On top of that, CAP will use its funds to finish construction of a synthetic rubber plant that is being built in cooperation with French tire maker Compagnie Financière du Groupe Michelin. The plant will have an annual total production capacity of 100,000 tons of butadiene, which is used to make materials in tire production, such as styrene butadiene rubber (SBR), acrylonitrile butadiene system (ABS) and styrene butadiene latex (SBL).

The upgraded naphtha cracker project is set to launch in January 2016, while the butadiene plant is also expected to commence production some time next year.

In a related development, Suhat said that the company was planning to temporarily shut down its production this year for three months of maintenance — from September to November — to connect CAP’s new machinery to existing infrastructure.

“We’ll only produce ethylene and propylene for nine months this year, but our downstream production will only experience a one to two week interruption,” Suhat said. According to him, production for butadiene, polyethylene, polypropylene, styrene monomer and toluene will continue almost uninterupted.

CAP made $13.18 million in net profit in the first nine months of 2014, a significant improvement compared to the $6.98 million net loss made in the same period a year earlier. The company’s net sales increased by about 7 percent from $1.81 billion during the January to September period last year to $1.94 million in the same period this year.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           March  10 , 2015 Subsribe Now !
• Sugar industry needs drastic reforms Subcribe: Asean Affairs Global Magazine
• Brunei’s natural gas pulling factor for India’s fertiliser plant plans
• Malaysian firm cancels purchase of iconic Taipei 101
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Chandra Asri to build naphtha refinery in 2018
• VN-EU pact to deliver the goods
Asean Analysis                    March 6, 2015
• Asean Analysis March 6, 2015
Washington Prepares to Welcome New Indonesian President, with Some Caution
Advertise Your Brand

Asean Stock Watch  March 9,  2015
• Asean Stock Watch-March 9, 2015
The Biweekly Update
• The Biweekly Update March 6, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand