PTTGC, Pertamina to jointly market petrochemical products in Indonesia

BANGKOK, December 16 (TNA) - PTT Global Chemical Public Company Limited (PTTGC) and Pertamina, Indonesia's national petroleum company, have signed a joint venture contract to form a company to market polymer products in Indonesia, where there are more than 250 million consumers. The contract, named the Manufacturing Joint Venture – Heads of Agreement, was signed in Jakarta on December 10, 2013, aimed at increasing sales and marketing channels for polymer-related products in Indonesia, with its establishment set in the first quarter of next year. PTTGC Chief Executive Officer (CEO) Bowon Vongsinudom told journalists on Monday that the agreement was for the joint import of plastic pellets into Indonesia, in which demand for the product is worth 5 billion US dollars annually. Bowon said the contract will help develop markets to support a world-class petrochemical complex worth 4-5 million US dollars PTTGC and Pertamina have agreed to complete by 2018 to handle at least 1 million tons of olefin yearly, as well as related industries. Bowon acknowledged that the accord is the collaboration of the two member countries of the Association of Southeast Asian Nations (ASEAN) in the lead-up to the formation of the ASEAN Economic Community (AEC), with its main products to mostly serve Indonesian people's demand. According to the PTTGC, his firm has delivered 60,000 tons of plastic pellets to Indonesia this year, but the delivery is expected to rise to 90,000 tons next year, thanks to the signing of the contract. Meanwhile, Hanung Budya, Pertamina's Director for Marketing and Trading, noted that Indonesia has the best potential in petrochemical businesses in the region with the value of its demand foreseen to increase to 30 billion US dollars over the next decade, as the agreed joint venture will serve Pertamina's plan to prosper in downstream petrochemical businesses. At present, Pertamina holds a 10 per cent share in the Indonesian petrochemical market and the complex should raise its market share to 30 per cent.(TNA)