ADNOC Explores Indonesian Petchems Complex
Abu Dhabi National Oil Company (ADNOC) has signed a Memorandum of Understanding (MoU) with Pertamina and Chandra Asri to study the potential development of a crude-to-petrochemicals complex in Balongan, Indonesia.
The complex would build upon the ambitions outlined in the comprehensive framework agreement that ADNOC and Pertamina signed in July 2019.
In addition, ADOC has signed a sales agreement with Pertamina for the supply of up to 528,000 t/y of LPG by the end of 2020, as well as another MoU with Chandra Asri to explore the potential supply of naphtha.
Chandra Asri would use the naphtha feedstock for both its current and proposed new cracker complexes in Indonesia. The Jakarta-based group is planning to build a second cracker complex (CAP2) in Cilegon and expects to make a final investment decision on the project in the first half of this year. The complex is expected to start production by 2024.
ADNOC’s CEO and Minister of State for the United Arab Emirates, Sultan Ahmed Al Jaber, said the agreements will potentially help ADNOC to “secure additional in-market presence in one of Southeast Asia’s fastest-growing economies”.
Nicke Widyawati, Pertamina’s president director and CEO, added: “We expect that both the potential refinery development at Balongan and the direct LPG supply will allow us to optimize Indonesia’s oil and gas value chain, better serve the domestic market through our vast distribution networks across the whole archipelago and access new opportunities to meet growing global demand for petrochemical products.”