Indonesia's TPPI mulls to resume operations next month

07-Apr-09

The petrochemical and refining complex of Indonesia's Trans Pacific Petrochemical Indotama (TPPI) was compelled to terminate operations due to breaches in the breakwater wall that protects the plant from the sea. This plant in in Tuban in East Java province has been shuttered since February 2008. Before the plant shutdown, European trader Vitol, which helped finance the complex, was a major lifter of its products and supplied TPPI with feedstocks. Planned to start late last year, the reopening was put off due to deteriorating petrochem demand leading to dismal price levels. To benefit from increasing domestic demand for gasoline, TPPI mulls restart of operations in May after a year and a quarter. In December 2008, a deal inked with Pertamina to supply the Indonesian state oil company with gasoline, enabled TPPI to produce less aromatics and more of the auto fuel to help raise its profits. It is ambiguous whether all of TPPI's 50,000 bpd capacity to produce gasoline is committed to Pertamina.