Pertamina and CPC build naphtha cracker in Indonesia
Indonesian state-owned oil and gas company Pertamina has recently signed a memorandum of agreement with CPC Corporation, Taiwan to build a naphtha cracker in West Java. The total investment for the project is estimated to be $8 bil with CPC's share being 45%. Pertamina and CPC have been discussing the project since the end of 2018. The annual production capacity of the new naphtha cracker is 1 mil mt of ethylene. The operation of the naphtha cracker is scheduled to start in 2026. The project is part of the expansion plan for the Balongan refinery by Pertamina. Expansion works at the refinery are scheduled to end around 2022, and its oil refining capacity will be 150,000 bbl per day, which is about 20% higher than the current level. The new naphtha cracker is built in the Balongan refinery, and naphtha feedstock will be supplied from the refinery.