Taiwan’s state-run CPC Corp plans to relocate equipment of its oil refinery and third naphtha cracker in Kaohsiung, Taiwan to set up a large-scale petrochemical complex in Indonesia. This step will better utilize the two plants’ equipment after their expected closure, preventing them from being scrapped. Due to good maintenance, the equipment of Kaohsiung refinery and the naphtha cracker has at least another 10-20 years of life. The decision to shift the naphtha cracker will save the company 30-40% costs as construction costs of a new plant with similar capacity. In a move that will ensure a channel for output from the new complex, the state refiner also plans to mobilize mid stream and downstream factories to make associated investments.
The projected capacities at the complex include 100,000-200,000 bpd of oil, 730,000 tpa of ethylene along with derivatives PE (polyethylene), SM (styrene monomer) and ACN (acrylonitrile). This will be the firm`s largest-ever overseas investment plan. With this, CPC targets to tap the fast expanding ASEAN (Association of Southeast Asian Nations), and face competition from its major domestic rival Formosa Plastics Group (FPG), as it gears up to set up a petrochemical complex in Vietnam.
If the project proceeds without a hitch, the company plans to start dismantling and exporting the equipment of the third naphtha cracking plant after its decommissioning in 2012, before doing the same for Kaohsiung refinery.