SAUDI Basic Industries Corporation (Sabic) is sounding possibilities to develop a petrochemical complex in Indonesia, with the capacity reaching at least 300,000 barrels per day. Secretary general of the Aromatic, Olefin and Plastic Industries Association (INAplas) Fajar AD Budiyono reveals that the corporate executives of Sabic would visit Indonesia to explore the possibility of developing a refinery.
Sabic officials are scheduled to meet with Minister of Industry M S Hidayat and head of the Investment Coordinating Board (BKPM) Gita Wirjawan to discuss the investment possibility.
“The INAplas and the national downstream plastic industries have met with Sabic. We exposed the petrochemical industry condition in Indonesia and they seemed enthusiastic. The outcome of the discussion will be brought to the Sabic headquarters. According to the schedule, they will meet with the Minister of Industry and the Head of BKPM to explore investment possibilities,” he says.
Sabic is one of the suppliers of imported polymer to Indonesia. Building a refinery in Indonesia is part of its efforts to make inroads into the market.
Last year, the major player in the global petrochemical industry joined hands with Sinopec to spend $2.7 billion to operate a petrochemical refinery of an annual capacity of 3.2 million tonnes per annum in China.
“If Sabic is interested in investing in Indonesia, they should build a refinery.”
To achieve project feasibility, the capacity should reach at least 300,000 bpd, which will require an investment of around $6 billion, says Fajar.
Sabic is the second Saudi Arabian company sounding the possibility of investing in refinery development in Indonesia. Saudi Aramco, the major crude oil supplier to PT Pertamina, is also discussing the possibility of joining the refinery projects in Tuban, East Java, and Cilegon, Banten.
Saudi Aramco will join hands with Pertamina and PT Chandra Asri to build a refinery of a daily capacity of 300,000 bpd on Chandra Asri’s area in Cilegon.
Previously, Chandra Asri is also touted to collaborate with Pertamina, the National Iranian Oil Refining and Distribution (NIORDC), and Petrofield to develop the Bojonegara refinery (Banten Bay) project on PT Pelindo II-owned area.
Moreover, a South Korean company, namely Honam Petrochemical, recently was considering building a petrochemical refinery in Indonesia.
