Chandra Asri Plans to Construct a New Petrochemical Complex in Cilegon, Indonesia

Chandra Asri to kick start feasibility study for the development and construction of second petrochemical complex in Indonesia

Indonesia: PT Chandra Asri Petrochemical Tbk (CAP), a Jakarta based petrochemical manufacturing company, majority owned by PT Barito Pacific Tbk; together with its subsidiaries, has planned to run feasibility study to build and operate a second petrochemical complex in Indonesia.

The new petrochemical plant will be situated in vicinity of the existing combined petrochemical chemical complex at Cilegon, Banten. This facility is worth approximately USD5 billion and will include an ethylene cracker plant with one million ton per year production capacity along with other downstream derivatives facilities.

TechSci Research depicts that initiation of construction of a new petrochemical manufacturing plant will help in strategic expansion of Chandra Asri Petrochemical across Indonesia garnering an increased market share in the country. Additionally, it would strengthen the production as well as distribution network of the company both at domestic and global level. Moreover, it would contribute to the strong growth market of petrochemical products such as pet coke in Asia Pacific region.

According to the recently published report by TechSci Research, “Global Petroleum Coke Market (Pet Coke) By Type (Fuel Grade Calcined, Fuel Grade Calcined), By End Use (Cement, Power, Smelting & Others), By Region Competition Forecast & Opportunities, 2011-2025”, pet coke market across the world is forecast to surpass USD25.35 billion by 2025, on account of rising government investments in construction and power generation sectors, coupled with growing demand for more cost effective and cleaner source of energy. In 2015, fuel grade pet coke garnered highest market share in global pet coke market, and this trend is anticipated to continue in the coming years, owing to its competitive pricing and high availability, as compared to calcined grade pet coke. Moreover, Asia-Pacific dominated global pet coke market in 2015, and is the region’s dominance is expected to continue during the forecast period, on account of strong economic growth, expanding infrastructure and large requirements for power generation in the region.