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Shanghai Huayi Plans To Invest $2.5 Billion To Build A Large Natural-gas Ethanol Plant In Indonesia
- Mar 13, 2018 -

China Shanghai Huayi Group plans to invest $2.5 billion on construction of petrochemical plant Synthetic ethanol in Kawasan Industri Teluk Bintuni, Indonesia. The factory will be taking the natural gas supply for domestic and export market. After the completion of the petroleum chemical plant, Genting Oil Turner private co., Ltd. (casino Oil Natuna Pte Ltd) will supply natural gas. This project is expected to reduce more than 220 megatons of petrochemical products import.

 

Chief minister of Indonesia's industry comprehensive industrial chemical and textile -Achmad Sigit Dwiwahjono said that the first phase of the investment is for the construction of the ethanol synthesis plant with annual production capacity of 1.8 million tons. At this stage, Huayi Group will test the market's absorption rate. At present, domestic ethanol demand in Indonesia reaches 600,000 tons per year. So the surplus production can be exported to China."Later, the company will focus on downstream, and they will look at the upstream market. At present, China needs a large amount of ethanol, and I think Shanghai Huayi will lay the foundation for the factory this year or the latest in 2019.

 

Huayi Group is still conducting a feasibility study and plans to get results in three weeks, he said. He hoped that domestic companies could work with the project."They are looking at three options in the area and are looking for the most effective location."In addition, Guayi Group requires infrastructure support, such as ports and tax incentives, or allowances, he stressed. Gas prices, he says, are no problem: $5.21 per million cubic meters."The objective of the negotiations is this, but it may change again, and we want local partners to participate."He added that Bintuni's petrochemical works could replace 100 megatons of imported raw materials. At present, the import of petroleum chemical products and raw materials reaches 220 trillion.

 

Previously, Wandy Wanto, deputy general manager of Genting Oil Nattner Private Limited, said he supported the government's plan to attract investors in the petrochemical industry. Cloud top is not the investor, just introduces the investor to come to our country to invest."In this way, we can work upstream and downstream.

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