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Indonesia’s Chandra Asri to build mini naphtha refinery in 2018

by ChemOrbis Editorial Team -
  • 09/03/2015 (13:19)
According to media reports, Indonesia’s Chandra Asri Petrochemical is reportedly planning to build a naphtha refinery in 2018 in order to reduce the company’s dependence on naphtha imports. The company is currently conducting preliminary studies for its naphtha production project, which is expected to be worth around $740 million.

The refinery will be located in Cilegon, Banten and is projected to have production capacity 2.5 million tons of naphtha per year, approximately 1.3 million tons of which will be used as feedstock for the company’s olefin production. The company consumes 1.7 million tons of the naphtha every year, which it sources from several Middle Eastern countries as well as Singapore.

Meanwhile, Chandra Asri is also conducting a $380 million expansion project at its naphtha-fed steam cracker at West Java through which the company aims to increase its ethylene production to 860,000 tons/year from 600,000 tons/year. The expanded cracker is expected to come online in January 2016.

Meanwhile, the company is also building a synthetic rubber plant in cooperation with France’s Compagnie Financière du Groupe Michelin. The plant reportedly will able to produce of 100,000 tons of butadiene and is expected to be launched in 2016.

Sources also stated that Chandra Asri would suspend its production for three months starting from September to November this year.
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