Indonesian oil and gas company PT Pertamina has appointed Thailand's PTT Global Chemical (PTTGC.TH) as its partner to develop its petrochemical business in Southeast Asia's largest economy, as per Dow Jones Newswires. The Thai company has one of the most sophisticated and integrated refineries with high energy efficiency in the Asia-Pacific region. Pertamina is seeking to enter the petrochemical industry as tens of millions of Indonesia's increasingly affluent middle-class will drive up demand substantially.
"Both companies are expected not only to build petrochemical plants but also to cooperate in marketing and research and development," Pertamina President Karen Agustiawan.
It added the agreement is expected to be signed by both companies in early April, before a joint venture will be set up by the end of the year. As per Pertamina, it will build a 1 mln tpa naphtha cracker plant as it takes steps to develop its petrochemical business. The plant is expected to come onstream by 2017.