This text was written by Connecforce, organizer of the 5th ASEAN Refining & Petrochemical Forum 2019

1. Refinery capacity expansion Dumai, Cilacap, Balongan and Balikpapan with total capacity 1 million BPSD.

Capacity: increase current capacity from 820, 000 to 1.4 million BPSD

Investment: around USD $30-$40 billion total

Location: Dumai/Cilacap/Balongan/Balikpapan

Most of the projects are in the early stage and 2019 will be a very important year for Pertamina, both in terms of construction progress, but also in terms of seeking partners for the projects to secure funds or feedstocks.

2. New grass root refineries at Tuban and Bontang of 300,000 BPSD, each.

Pertamina, to fulfill the domestic fuel need, has been planning to build new grass root refineries since 2013. Pertamina managed to find partners for the GRR refinery projects which are worth USD $10 - $20 billion, each. While the feasibility study will be conducted for the Bontang Project, the Tuban project owners first need to resolve the land problems between local people and regulators.

3. Green refinery - Pertamina to produce green gasoline upgrading existing refineries and building new one plant with Eni.

Pertamina planned to convert its existing refineries in Plaju, Dumai, Cilacap and Balongan to co-process palm oil and crude oil for the green products: green gasoline, green LPG, and green jet fuel. While they are researching domestically for catalysts and ways for the new green fuel, they are also collaborating with Eni for more possibilities.

 4. Upgrading and development of 488 storage facilities.

Backdate to 2017, Pertamina allocated USD $1.3 billion to increase its fuel stock with new and upgraded storage facilities. Until recently, it still remains a great opportunity for the contractors as the plan still goes with their 2019 plan.

CHANDRA ASRI Petrochemical

Chandra Asri Petrochemical (CAP) has been investing USD $5 billion to establish a new factory. This factory is designed to have a production capacity of 1,100,000 TPY ethylene, 600, 000 TPY propylene, 175,000 TPY butadiene, 363,000 TPY benzene, 450,000 TPY HDPE, 300,000 TPY LDPE and 450,000 TPY PP. Lummus Technology, GTC Technology, Texplore, and Lyondellbasell were awarded the licensing contracts. Besides, CAP has also been working on the expansions of its existing plants.

New Polyethylene plant capacity 400,000 TPY

Chandra Asri started the construction of a new PE plant with a total investment of USD $350 million. The main purpose of expansion is to reduce the import of PE products.

New Butene 1 plant capacity

After the butadiene expansion project, Toyo with its subsidiary was awarded another EPC contract for the Butene 1 project. The products will be consumed as the material of CAP's PE plant.

New MTBE plant capacity

Combining the Butene 1 project and MTBE project, the lump sum of the contract is around USD $114 million. The MTBE produced in the plant will be sold to the gasoline blend market.

ASAHIMAS CHEMICAL - Expansion of VCM and PVC capacity 200,000 TPY.

In association with the stable demand of PVC and keep its No. 1 position in the Southeast Asia, AGC planned to further expand its PVC production of Asahimas Chemical in Indonesia. Back in 2016, they allocated $ 425 million for increasing VCM by 400,000 TPY and PVC by 250,000 TPY.

NIPPON SHOKUBAI INDONESIA - Expansion of AA and SAP capacity 100,000 TPY.

To construct the AA project, PT Nippon Shokubai Indonesia (NSI) awarded a $200 million contract to the consortium of Toyo Engineering and Sumitomo Mitsui Construction's Indonesian subsidiaries. The balance between supply and demand of AA is tight in recent years. With an expectation on the demand growth, NSI finalized its decision on the investment.

LOTTE CHEMICALS - New Olefins Plant capacity 1 million TPY ethylene, including polymer and derivatives plants

The total investment of LOTTE Chemical Indonesia New Ethylene Project (LINE) is expected to be $3.5 billion. Besides the petrochemical complex, Lotte Chemical Titan planned to add a naphtha-fed steam cracker with feedstocks from its Malaysia facility. Once completed, the operation site will turn to be an integrated complex with HDPE and LLDPE plants. The company aims at balancing the trade and reducing the trade-deficit in the Indonesian petrochemicals sector.

POLYTAMA PROPINDO - Expansion of PP plant capacity 300,000 TPY

Polytama Propindo spent $10 million in its PP production expansion with the target of producing 240,000 TPY in 2018 and 300, 000 TPY in 2019. It also plans to build a new plant, Polytama II, to expand its capacity by 2020 or 2022.