Pertamina’s TPPI kicks off $180m petrochemical plant expansion

first_imgPetrochemical producer PT Trans-Pacific Petrochemical Indotama (TPPI) has begun work to expand its sole refinery in Tuban, East Java, in cutting Indonesia’s petrochemical imports.TPPI, a subsidiary of state-owned oil and gas giant Pertamina, plans to raise its output capacity by 30 percent to 780,000 tons per year. The refinery can produce either gasoline or paraxylene, a key ingredient in making polyester textiles.The producer expects to finish designing the facility by September 2020 and finish building five storage tanks, which are key infrastructure, by December 2021. The expansion project will cost US$180 million. “By the first quarter of 2022, we expect the refinery to be fully operational,” said TPPI president director Yulian Dekri in a statement on Thursday, Sept. 24.Slashing petrochemical imports is one of the government’s many strategies to turn around Indonesia’s gaping trade deficit which, despite having improved during the health crisis, remains a long-term vulnerability for Southeast Asia’s largest economy.Indonesia imports roughly 1 million tons of paraxylene each year, according to TPPI. The country’s only other paraxylene-capable refinery is Pertamina’s Cilacap refinery in Central Java. This refinery has a smaller capacity of 200,000 tons per year. Pertamina, which acquired TPPI last year, had ordered the refiner to only produce gasoline in fueling Indonesia’s constantly growing fleet of personal vehicles.When COVID-19 struck Indonesia, causing domestic fuel demand to plunge, Pertamina ordered TPPI to halve its gasoline production while keeping the remaining capacity idle in cutting operational costs.“In August, we resumed production of paraxylene as paraxylene prices had slightly risen and domestic demand was still strong,” TPPI corporate secretary Ahmad Fanny told The Jakarta Post on Friday, Sept. 25.The company plans to produce 280,000 tons of paraxylene next year. Globally, annual paraxylene production capacity is expected to grow 12.4 million tons between 2020 and 2030 (mostly from China), which will further strain an already existing global overcapacity, wrote energy consultancy Wood Mackenzie in a statement in June.Wood Mackenzie principal analyst Joyce Grigorey said petrochemical plants already under construction would likely be built but would not necessarily run at full capacity.“Those projects that are still in the early stages of development and have not started construction will likely be delayed,” said Grigorey.Industry Minister Agus Gumiwang Kartasasmita encouraged Pertamina to allow TPPI to produce more paraxylene in curbing petrochemical imports, a result that is “very good for improving Indonesia’s economy.”Topics :last_img read more

Lambert expects survival

first_img Villa are currently in the bottom three but victory at the Britannia Stadium will leave them only one point adrift of the Potters, who have won only one of their last 11 games. Lambert takes heart from the performance levels and confidence shown by his players in recent weeks and said: “The thing for me is that they are confident in having the ball. It is not as if they are frightened by it and just want to launch the ball up the field. They are certainly play with a bit of freedom.” Paul Lambert is backing Aston Villa’s crop of youngsters to hold their nerve in the Barclays Premier League survival battle and believes the pressure is on Stoke ahead of Saturday’s clash. Press Associationcenter_img He added: “When you look at the table, from 11th place down only four points separate the teams down to us. That’s nothing. It’s basically just one game. “Everybody has to play some really hard fixtures. It’s how you hold your nerve. We try to keep the place upbeat and we don’t look like a team that is playing with nerves. “You have to have a strong mentality so the pressure doesn’t get to you and see it through. If you do that, that’s half the battle. “I have not spoken about relegation or anything like that. I think that breeds negativity. Form gives you confidence and we are playing well enough to get results.” Lambert has plenty of respect for the success Pulis has enjoyed with Stoke but knows it is an opportunity for Villa to drag the Potters back into the thick of the relegation battle. He said: “Maybe Tony didn’t visualise Stoke were going to be in this position after the start they had, but the reality is they are not too far ahead. I am sure Tony would like more points than he has got but we are only four points behind them. “The pressure is on them. It’s on Stoke because they are the home team and they haven’t won of late as well. There will be a lot of pressure there for Stoke as well as ourselves. It is a huge game. Every game you play is massive. We know if we win, we are only one point behind them and that’s the way to go and view it.” last_img read more