PT Pertamina Patra Niaga and PT Ineos Aromatics Indonesia to bolster Indonesia's petrochemical market
Published by Bella Weetch,
The growth of the domestic petrochemical product market continues to show a positive trend and increasing demand. On the other hand, with the policy to reduce imports of downstream commodity goods, services for petrochemical products must be fulfilled domestically. This is where PT Pertamina Patra Niaga Sub Holding Commercial & Trading PT Pertamina (Persero) meets the market needs of petrochemical products, including aromatics, named paraxylene.
The spirit of serving the needs of Petrochemical products is contained in PT Pertamina Patra Niaga's strategy, Petchem Go to Market, and on this occasion cooperating with PT Ineos Aromatics Indonesia (IAI) in providing Paraxylene needs through the Vendor Held Stock (VHS) programme until December 2022. The collaboration was signed directly by Riva Siahaan, Marketing & Commercial Director of PT Pertamina Patra Niaga, with Frank Xu Yang, President Director of PT Ineos Aromatic Indonesia, at the Tanjung Gerem Fuel Terminal, Merak, Indonesia.
Riva Siahaan, Marketing & Commerce Director of PT Pertamina Patra Niaga, said that the VHS programme is a new scheme for the distribution of paraxylene which will support and ensure the paraxylene supply security for PT Ineos Aromatic Indonesia. Thus, the production of domestic petrochemical commodities can meet the needs of the domestic market. In this collaboration, around 170 000 t of paraxylene will be distributed to be processed by PT Ineos Aromatic Indonesia.
“Paraxylene is the basic ingredient for making purified terephthalic acid (PTA). This PTA is used to make polyester which is then made into fibres, textiles, films, and PET bottles. With VHS, our supply to PT Ineos Aromatic Indonesia will be more effective and efficient because Pertamina will send and provide storage to PT Ineos Aromatic Indonesia. The supply security is the main key so that production can run optimally and meet domestic PTA needs," Riva said.
Riva explained that as an energy and storage company, PT Pertamina Patra Niaga also sees this petrochemical market as one of the priority markets for services in 2022. PT Pertamina Patra Niaga will run a VHS collaboration with PT Ineos Aromatic Indonesia through the Go Petrochemical programme.
"PT Pertamina Patra Niaga will provide a guaranteed feedstock supply for PT Ineos Aromatic Indonesia. We are committed to carrying out this collaboration well. We also seek to develop and improve domestic petrochemical products while also benefiting the community. We hope it can become a tangible form of the industrial sector that supports the government in encouraging national economic growth," Riva concluded.
On the same occasion, Frank Xu Yang, President Director of PT Ineos Aromatic Indonesia, welcomed the VHS programme for sending paraxylene for his company to produce PTA needs and strengthen national supply. Along with his belief in the growth of the Indonesian polyester market, production and distribution must be ensured to run optimally.
“INEOS is a global producer of petrochemicals, and PTA is one of our products. We recently completed a US$70 million investment for our PTA plant in Merak modernisation, demonstrating our commitment to increasing the supply and competitiveness of the Indonesian polyester industry. In the last 25 years or so, INEOS' PTA plant in Merak has played an important role in ensuring the supply of PTA for Indonesia. Through the VHS programme, I hope that we can get paraxylene supplies on schedule. I hope to continue to advance this business with Pertamina and Indonesia,” Frank added.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/15032022/pt-pertamina-patra-niaga-and-pt-ineos-aromatics-indonesia-to-bolster-indonesias-petrochemical-market/
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