Indonesia's largest petrochemical producer Chandra Asri and Netherlands-based storage and terminal operator Vopak are planning to set up an infrastructure joint venture in Indonesia.
The two companies signed a letter of intent on 5 October to set up the partnership, which aims to establish a new jetty and tank farm business that will serve third-party customers and to build secondary infrastructure at Chandra Asri's new petrochemical complex, the Indonesian firm said.
Chandra Asri's second petrochemical complex will include a 1.1mn t/yr naphtha-based cracker, 450,000 t/yr high-density polyethylene (HDPE) unit, 300,000 t/yr low-density polyethylene unit (LDPE) and a 450,000 t/yr polypropylene (PP) unit.
The producer is aiming to commission the complex in 2024, barring any delays because of the Covid-19 pandemic.
Chandra Asri currently operates a 136,000 t/yr HDPE unit, two linear low-density polyethylene/HDPE swing units with nameplate capacity of 200,000 t/yr and 400,000 t/yr respectively and a 590,000 t/yr PP plant at its complex in Cilegon.
Vopak's Indonesian interests include a 49pc stake in an oil terminal in Jakarta and a 95pc stake in a chemical terminal in Merak.
