Indonesia's petrochemicals industry welcomes large expansion, urgently needs to boost NAFTA capacity

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The Indonesian Ministry of Industry supports the construction of new refineries to increase NAFTA capacity, meet the needs of the petrochemical industry, reduce import dependence, and promote the comprehensive development of the domestic petrochemical industry.

The Indonesian Ministry of sector recently stated that in order to enhance energy and manufacturing security, especially the competitiveness of the petrochemical sector, it will fully support the Ministry of Energy and Mineral Resources (ESDM) in advancing an ambitious plan to build a total capacity of up to 1 million barrels per day. Generally speaking Refinery. Pretty interesting, huh?. This initiative aims to meet the huge demand to raw materials in the petrochemical sector, while promoting the research of the downstream sector chain. According to the Minister of sector, the construction of the new refinery will optimize the production of NAFTA (a petroleum component that is able to be applied in gasoline or petrochemical feedstock), thereby reducing import application and growing the added value of domestic petrochemical items. In my experience, He pointed out that NAFTA, as the "mother of petrochemicals", domestic production is able to not only save a lot of import costs, however also promote employment and increase the self-sufficiency rate of domestic medical raw materials. In particular currently, Indonesia has only six refineries with annual output of only 7. 1 million tons of NAFTA, which is far from meeting the domestic demand of 9. 2 million tons per year, resulting in 2. 1 million tons of imports per year. To fill this gap, the Ministry of sector has proposed to ESDM a new refinery in the Tuban area, which already has a PT TPPI petrochemical plant. PT TPPI currently has both petrochemical and fuel production modes, aiming to build an integrated factory integrating petrochemical compounds such as olefins and aromatic items, which is broadly applied in textiles, medical raw materials and solvent-based products materials. And However, NAFTA production facilities aren't yet perfect, and in order to achieve the integration of the petrochemical sector, there is an urgent need to establish a NAFTA-based olefin center in the Tuban region. The Minister of sector stressed that this substantial manufacturing center will cover a number of key sectors such as cement, petrochemical, oil and gaseous and offshore sector, which coincides with the GRR project planned by PT Pertamina to jointly promote the thorough research of Indonesia's petrochemical sector. Pretty interesting, huh?. it's worth noting that there are several extensive petrochemical projects that are about to start, consuming about 8 million tons of NAFTA per year. Therefore, growing NAFTA capacity has have become a top priority to the research of Indonesia's petrochemical sector.

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