PT Pertamina of Indonesia and Thailand’s PTT Global Chemical PCL (PTTGC) have signed a manufacturing joint venture-heads of agreement to pursue the final investment decision for a petrochemical complex in Indonesia slated for commercial operation by 2018.
The agreement is aimed to further the agreed joint-venture principles and investment scope for the project as well as enable both parties to finalize project details by early 2014 prior to conducting the detailed bankable feasibility study and front-end engineering design, Pertamina said.
This latest agreement follows the completion of the extensive project preliminary feasibility study, which is a part of the partnership HOA signed in April (OGJ Online, June 7, 2013).
The companies expect a final investment decision on the project in 2015, according to Pertamina.
Pertamina and PTTGC have targeted the project feasibility study refinement stage for conclusion by second-quarter 2014 to accelerate the implementation and achieve start-up of the complex by 2018, Pertamina said.
Later this month, PTTGC and Pertamina will also enter into a marketing and trading joint venture to initially conduct both PTTGC’s and Pertamina’s polymer products marketing and distribution throughout Indonesia, Pertamina reported.
Pertamina first announced its intention to construct the $5 billion complex in December 2012 as part of a plan by the state-owned company to increase its share of the Indonesian petrochemical market (OGJ Online, Dec. 18, 2012).