INDONESIA: CAP & Vopak setting up JV company for industrial terminal in Indonesia
Chandra Asri Petrochemical (CAP) and Royal Vopak have signed a letter of intent (LoI) to set up a joint venture company for collaboration in the industrial infrastructure business in Cilegon, Banten Province, Indonesia. As part of the LoI, the two companies will explore storage opportunities in supply networks to help grow existing petrochemical value chains and lay the foundation for an expanded industrial cluster in Cilegon.
Finalization of the LoI and setting up the joint venture company are subject to final terms and conditions, including customary regulatory and shareholder approvals. The proposed partnership is part of CAP's plan to develop its second petrochemical complex in Cilegon.
The new complex would double CAP's production capacity from 4 million t/y to 8 million t/y with products ranging from polyethylene, polypropylene, aromatics, mixed C4 and pygas. Commercial operations are scheduled to begin in 2024.
Source: Weekly “PetroChemical News” (PCN), Durham, NC, USA; 12 Oct 2020
(Syed Rashid Ali, Karachi, Pakistan)