Indonesia Petrochemicals report Q2 2012

Thursday, Jun 21, 2012

Research and Markets (http://www.researchandmarkets.com/research/28mtc2/indonesia_petroche) has announced the addition of the "Indonesia Petrochemicals Report Q2 2012" report to their offering.

Business Monitor International's Indonesia Petrochemicals Report provides industry professionals and strategists, corporate analysts, petrochemical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Indonesia's petrochemicals industry.

Indonesia continues to attract investment in its petrochemicals industry, which is insufficient to cover domestic demand, according to BMI's latest Indonesia petrochemicals report.

South Korea's Honam Petrochemical Corporation is planning to invest up to US$5bn in a complex in Cilegon, Banten province, with completion slated for 2016. It will have capacities for 1mn tpa ethylene 550,000tpa propylene and 140,000tpa butadiene. Downstream units would produce 600,000tpa PE, 600,000tpa PP and 700,000tpa ethylene glycol. Saudi Aramco is also studying an integrated refining and petrochemical project at Tuban, East Java, based on a 300,00b/d refinery; the proposed configuration of downstream units has yet to be disclosed. Meanwhile, Thailand's Siam Cement Group (SCG) and PT Barito Pacific (Jakarta) are studying ways to raise US$500mn for an expansion of their Chandra Asri Petrochemical joint venture, which should see ethylene capacity raised from 600,000tpa to 1mn tpa, a new 100,000tpa butadiene extraction facility and PE capacity increased by 220,000tpa to 540,000tpa.

Work on the butadiene project began in Q311 and the plant is expected onstream in 2013, while expansion of the ethylene plant and the PE unit, as well as other facilities, is due to be completed in 2014. Whereas a number of South East Asian economies are bracing themselves for stagnating growth, we see Indonesia powering on to relatively robust growth of 5.8% in 2012 on the back of strong domestic demand, even as net exports' contribution to growth wanes. At the same time, risks to growth will be skewed to the downside. A prolonged global economic downturn could affect the archipelago's ability to reach its full growth potential, but exposure is limited compared to the rest of the region.

Source: Business Wire