Lotte Chemical Indonesia cracking project to start construction next year

Recently, Lotte Chemical Titan (LCT), a subsidiary of Lotte Chemical, stated that in view of the improvement of the epidemic in Indonesia, the previously announced Cilegon steam cracking and derivatives integrated plant in Indonesia has the conditions to start construction. Lotte Chemical Indonesia's new ethylene project (LINE) is expected to start construction in 2022 and is scheduled to be completed in 2025. The construction cost of the project is approximately US$3.9 billion. LCT will own 51% of the shares and Lotte Chemical will hold 49%.

Lotte Chemical said that the petrochemical complex will consume 3.2 million tons/year of naphtha and liquefied petroleum gas (LPG) as raw materials. The planned Cilegon cracker will produce 1 million tons/year of ethylene and 520,000 tons/year of propylene. The integrated plant will also produce 250,000 tons/year of polypropylene (PP) and 140,000 tons/year of butadiene. Lotte Chemical predicts that the annual sales of the new ethylene project in Indonesia will reach US$2.06 billion. The project will strengthen the group's position in the Southeast Asian market.

This project will be the second ethylene plant in Indonesia. Chandra Asri Petrochemical Company has a cracking unit in Cilegon with an ethylene production capacity of 900,000 tons per year.