Dalian Ligong Safety Equipment Co.,Ltd
China Huayi Group plans to invest 2.5 billion U.S. dollars to build a petrochemical plant in Kawasan Industri Teluk Bintuni, West Papua, Indonesia. The plant will synthesize natural gas into ethanol for domestic and export markets.
After the petrochemical plant is completed, natural gas will be supplied by Genting Oil Natuna Pte Ltd. Petrochemical projects are expected to reduce the import of petrochemical products exceeding 220 trillion dong per annum.
Achmad Sigit Dwiwahjono, chief of the general branch of the chemical, textile and general industry at the Ministry of Industry, said the first stage of investment was to build a synthesis plant with an annual capacity of 1.8 million tons of ethanol.
He told reporters that at this stage, Huayi Group will test the market absorption rate. At present, the domestic demand for ethanol reaches 600,000 tons a year, so the remaining output can be exported to China.
"In the future, the company will focus on the downstream, they will observe the upstream market.China now requires a large amount of ethanol, I think this year or by 2019, Shanghai Huayi will lay the foundation stone for the plant."
Westgate claims that Huayi Group is still conducting a feasibility study and plans to produce results in three weeks. He hoped that domestic enterprises can cooperate with the project. "They consider three options in the area and are looking for the most effective place."
He stressed that, in addition, Huayi Group requires infrastructure support, such as ports and tax incentives, that is, allowances. In his view, gas prices have not been a problem, that is 5.21 US dollars per million cubic British thermal unit. "The goal is to negotiate, but it may change again, and we want the local partners to participate."
He added that Bin Tuni's petrochemical project can replace imported raw materials of 100 trillion shields. At present, petrochemical products and raw materials imports reach 220 trillion dong per year.
Previously, Wandy Wanto, deputy general manager of NetStone Private Limited of Genting Oil, said he supported the government's plan to attract investors in the petrochemical industry. Genting is not an investor, just to introduce investors to invest in our country. "As a result, we can work smoothly downstream from upstream."
Earlier, several large petrochemical companies were interested in investing in the Pinu industrial area. For example, LG International invited Duta Firza to invest 1.3 billion U.S. dollars in the construction of a petrochemical plant in Bin Tuni. Most recently, the company is interested in Ferrostaal and Indonesian fertilizer companies that also build petrochemical projects in Bin Tunisia. To date, LG International is still awaiting the feasibility study of Fluor and Indonesian fertilizer companies.
Copyright © Dalian Ligong Safety Equipment Co.,Ltd All Rights Reserved.