Communicator

TPPI and its petrochemical site have been added.

#tppi #tuban  #transpacific  #indotama  #tubanpetro  #pertamina  #indonesia  #petrochemicals 

Petro Oxo Nusantara and its production site have been created.

#pon  #petrooxonusantara  #petrotuban  #pertamina  #indonesia  #java  #oxoalcohols  #syngas 

Polytama Propindo has been created and its mass balance completed.

#polytama  #propindo  #tubanpetro  #pertamina  #indonesia  #java  #polypropylene  #spheripol  #lyondellbasell 

Cilegon Plant - LOTTE Indonesia New Ethylene (LINE). Credit: PT Lotte Chemical Indonesia

PT Lotte Chemical Indonesia (LCI) is undergoing a transformative phase marked by significant investment, new long-term supply agreements, and persistent industry headwinds. The company’s strategy and recent developments provide insight into both its growth ambitions and the broader challenges facing the Southeast Asian petrochemical sector.

Major Expansion: New Cracker Facility

LCI is set to commence operations at its new mixed-feed cracker in Cilegon, Banten province, Indonesia, in the second half of 2025. This facility, part of a $3.95 billion investment, will have an annual production capacity of 1 million metric tons of ethylene. The new cracker is a central component of the Lotte Chemical Indonesia New Ethylene (LINE) project, which aims to strengthen the company's upstream integration and supply chain resilience.

Strategic 10-Year Ethylene Supply Deal

In May 2025, LCI secured a 10-year ethylene supply contract with PT Asahimas Chemical, an integrated chemical producer in Indonesia. The contract, effective from July 1, 2025, to June 30, 2035, commits LCI to supply approximately 150,000 tonnes of ethylene per year to Asahimas Chemical. The agreement’s value is expected to exceed 10% of Lotte Chemical Titan (the Malaysian-listed parent)'s latest annual consolidated revenue, underlining its financial significance. Pricing for the contract is pegged to prevailing market rates, ensuring flexibility in a volatile market environment. The long-term deal provides both revenue stability for Lotte Chemical and supply security for Asahimas, supporting downstream chemical industries in Indonesia.

Financial and Market Pressures

Despite these strategic moves, Lotte Chemical Titan continues to face financial challenges. The company reported its eighth consecutive quarterly loss in Q1 2025, though losses narrowed year-on-year due to improved product spreads and contributions from its US associate. For Q1 2025, Lotte Chemical Titan posted a net loss of RM125.67 million, compared to RM178.03 million a year earlier, with revenue dropping 22.3% to RM1.49 billion on lower sales volume and prices. The global petrochemical sector is currently experiencing margin compression due to oversupply, particularly from China, which has weighed on profitability and forced companies like Lotte Chemical to operate existing Malaysian crackers at reduced capacity (45%-50% since December 2024).

Ownership Restructuring and Strategic Flexibility

To bolster its financial position, Lotte Chemical reduced its stake in the Indonesian venture from 49% to 24% in early 2025, selling the shares to a consortium of South Korean financial institutions. Lotte Chemical Titan retains a 51% stake in Lotte Chemical Indonesia. The company is also exploring feedstock flexibility for the new cracker, planning to source naphtha from the Middle East and potentially substitute up to 50% of naphtha feedstock with natural gas liquids such as LPG or ethane, depending on market economics.

Sector Outlook and Strategic Positioning

The Southeast Asian petrochemical industry is in a phase of consolidation, with mergers and acquisitions on the rise as companies seek to enhance shareholder value amid challenging conditions. Lotte Chemical’s long-term supply contract and the new Indonesian cracker position it to capitalize on regional  demand growth, even as it navigates short-term market volatility and restructuring pressures. The new supply agreement is not expected to impact the company’s share capital or ownership structure, maintaining stability for investors.

Conclusion

Lotte Chemical Indonesia’s ambitious expansion and strategic supply agreements reflect a commitment to long-term growth and regional market leadership. However, the company continues to navigate a difficult economic landscape characterized by global oversupply, margin pressure, and the need for financial restructuring. The coming years will be pivotal as the new cracker comes online and the company seeks to leverage its strengthened position in Indonesia’s growing chemical sector.

#lotte  #lottechemical  #indonesia  #malaysia  #lci  #lineproject  #cilegon  #asahimas  #agc  #asahiglass  #ethylene  #steamcracker  #ethyleneplant 

PT Lotte Indonesia LINE (LOTTE Indonesia New Ethylene) project has been partly modeled, some technologies have been (presumable) identified and mass balance mostly developed. Due to some uncertainties, the MB is yet not complete.


#lotte  #indonesia  #line  #mfc  #mixedfeedcracker 

KUALA LUMPUR (March 6): Lotte Chemical Titan Holding Bhd announced that its parent company, Lotte Chemical Corporation (LCC), is selling a 25% stake in PT Lotte Chemical Indonesia (LCI), which will lower LCC's direct interest in the Lotte Chemical Indonesia New Ethylene Project to 24% from 49%.

LC Titan, in which LCC controls 75.86%, holds the remaining 51% stake in LCI.

LC Titan said LCC has received an offer from a group of companies — comprising one securities company and five special purpose corporations set up by five other securities companies — for the 25% stake in LCI for US$462.7 million (about RM2.05 billion).

LC Titan, which has a right of first refusal to the stake that LCC is selling to a third party at the offer price that LCC gets — based on a 2019 shareholders agreement between LCI, LC Titan and LCC — has decided not to take up the offer. 

"The board of directors of LC Titan wishes to announce that the Board had deliberated and made a decision not to accept the offer by LCC to purchase the sale shares held by LCC in LCI for US$462.7 million," LC Titan's bourse filing read.

Therefore, while LC Titan's stake in LCI will remain at 51%, its parent's direct interest in the ethylene project in Indonesia will be reduced to 24% following the stake sale.


#lci  #lotte  #lottechemical  #indonesia  #shareholding 

Asahimas Banten factory and its main chemical production facilities with their respective production capacities have been added.


#agc  #asahimas  #chloralkali  #vcm  #vinylchloride  #pvc  #indonesia  #causticsoda  #edc  #chlorine  #hydrogen 

PT Asahimas Chemical (Indonesia), a subsidiary of AGC Inc. (Japan) has been created.


#asahimas  #indonesia  #agc  #chloralkali  #pvc 

The description of the Pertamina RU VII Kasim Refinery has been updated.

#kasim #refinery  #pertamina  #indonesia 

The description of the Pertamina RU VI Balongan Refinery has been updated.

#balongan #refinery  #pertamina  #indonesia 

The description of the Pertamina RU III Plaju Refinery has been updated.

#plaju #refinery  #pertamina  #indonesia 

Pertamina RU II Dumai Refinery description updated.

The description of the Pertamina RU II Dumai Refinery has been updated.

#cilacap #refinery  #pertamina  #indonesia 

The description of the Pertamina RU IV Cilapac Refinery has been updated.

#cilacap #refinery  #pertamina  #indonesia 

Pertamina refineries and refining capacities updated.


#pertamina  #refining  #capacity  #indonesia 

PT Kilang Pertamina Balikpapan (PTPKB) has been added.

PT KPB was established to carry out the development of the Balikpapan & Lawe-Lawe Refinery Development Master Plan (RDMP) project and run the refinery processing business of Refinery Unit (RU) V Balikpapan, East Kalimantan.

#pertamina #refinery  #balikpapan  #indonesia 

Starting 2025 with a Pre-Bid Meeting for GRR Tuban Procurement

Jakarta, January 16, 2025 – As a grass-root project built from the ground up, PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP) recognizes the complexity of preparing for the construction of the integrated fuel refinery with a petrochemical industry, Grass Root Refinery (GRR) Tuban.

Dduring a pre-bid meeting for site development work held in Jakarta on 14 Jan 2025), Reizaldi Gustino, President Director of PRPP, highlighted that the quality of site development work will significantly impact the execution of the engineering, procurement, and construction (EPC) stages of the GRR Tuban Project.

Echoing Reizaldi’s statements, Irwan Priyasa, PRPP Commissioner, representing the company’s Board of Commissioners, emphasized that the success of the site development work would impact the overall project timeline.

The pre-bid meeting for the site development work procurement is part of the procurement process, aimed at providing clarification to all bidders regarding documents, procedures, and requirements for the tender.

The scope of this work includes the preparation and conditioning of the GRR Tuban area before the construction of refinery facilities. Specific tasks include land elevation adjustments and the development of basic infrastructure across approximately 841 hectares.

The event was attended by all PRPP Board of Directors, representatives of PT Kilang Pertamina Internasional shareholders, including Albin Ginting, Vice President of Project Management, as well as representatives from 13 pre-qualified bidders, both domestic and international, eligible to participate in this procurement tender.

In addition to the site development work procurement, a pre-bid meeting was also held in 2024 for EPC work packages of the GRR Tuban Project, during which 25 pre-qualified bidders were registered for a total of seven EPC work packages.

Source: PT PRPP News Highlight.

#pertamina  #indonesia  #jakarta  #java  #rosneft  #prpp  #refinery 

PT Pertamina Pedeve Indonesia has been added.

#indonesia #pertamina  #pedeve  #equityinvestor  #investmentportfolio 

PT Pertamina Rosneft has been added.

#pertamina  #rosneft  #jointventure  #refinery  #indonesia 

10 Dec 2024.

COAL IMPORTS

In 2024, the global reliance on thermal coal is proving to be more resilient than expected. Kpler reports a 9 million metric ton increase in thermal coal exports for the first 11 months compared to 2023, with Indonesia leading the charge by exporting over 500 million metric tons. Exports will climb further in December as power firms stock up for the Northern hemisphere winter. China expanded imports by around 8% to a record 340 million tons from January 1st through the first week of December.

COAL IMPORTS AND CONSUMPTION

China's electricity generation from coal-fired plants climbed 2% over the first 10 months of 2024 to a new record of 4,838 terawatt hours, according to energy think tank Ember, making 2024 the ninth consecutive year of coal-fired expansion in China. The continued expansion in coal imports and use underscores the difficulty of dislodging fossil fuels from energy systems, and may disappoint those hoping for a peak in coal burning. Beyond China, other key growth markets for coal imports and consumption this year are across Southeast Asia, where several economies have benefited from expanded manufacturing output and exports, and rising regional consumption.

Sources: finimize, Reuters

#coal  #thermalcoal  #china  #india  #indonesia  #coalexports  #coalimports 

LCTN Merak plant and productions added.
 

#ineos #innovene  #gasphasepe  #polyethylene  #lctn  #lottechemical  #titan  #indonesia 

PT Lotte Chemical Titan Indonesia, TBK (LCTTBK) has been  added.

#lotte #chemical  #titan  #indonesia  #lcttbk