Now Available: Indonesia Petrochemicals Report Q3 2014

From: Fast Market Research, Inc.
Published: Mon Jul 28 2014

Indonesia is set for strong growth in capacity that should improve its self-sufficiency, but it will still need to import petrochemical products, says BMI's latest Indonesia Petrochemicals Report. The danger the country's naphtha-fed sector faces is competing with low-cost ethane-based producers in the Middle East and the US. The problems facing petrochemical producer TPPI over debts are related to cost rises and indicate the kind of problems the industry could face.

Pertamina's ending of feedstock supply to local aromatics producer Trans Pacific Petrochemical Indotama (TPPI) in May 2014 due to unpaid debt will significantly impact on Indonesian petrochemicals output. A decline in paraxylene prices made the partnership economically unviable for the state-owned oil and gas company. In a six-month agreement beginning in November 2013, the plant was to process 55,000-80,000 b/d of condensate and 2.8mn barrels of light naphtha in order to produce a total of 530,000 tonnes of petrochemicals. An end of feedstock supply will severely undermine domestic petrochemicals output. TPPI may seek a temporary measure to maintain operations, but its payment disputes with Pertamina are unlikely to be resolved soon.

Full Report Details at

Key views for the sector:

* The domestic petrochemicals market is set for a slowdown in consumption growth compared to previous years of double-digit rates, but is not expected to contract. The construction sector is set for slower growth than previously anticipated, while the automotive sector should continue to see robust growth.
* Over the next five years, ethylene capacity is set to surge by 2.38mn tpa, a massive increase on 2013 levels. This should help sustain 1.22mn tpa of extra polyethylene (PE) capacity and 700,000tpa of ethylene glycol by 2018. In addition, new crackers and propylene units at refineries will provide enough feedstock for 1.2mn tpa of polypropylene (PP). Other new petrochemicals capacities include 400,000tpa of polyvinyl chloride capacity. The...

The Indonesia Petrochemicals Report has been researched at source, and features Business Monitor International (BMI)'s market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.

BMI's Indonesia Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Indonesian petrochemicals industry.

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