Shanghai Huayi plans to build a large-scale natural gas to ethanol plant

Shanghai Huayi Group plans to invest US $2.5 billion to build a petrochemical plant in Indonesia's kawasan industri Teluk Bintuni industrial zone. The plant will produce ethanol from natural gas for domestic and export markets. When the petrochemical plant is completed, natural gas will be supplied by Genting oil natura Pte Ltd. It is expected that petrochemical engineering will reduce the import of petrochemical products over 220 trillion Dun per year. Achmad sigit dwiwahjono, director general of the chemical, textile and integrated industries division of the Ministry of industry, said the first phase of investment was to build a synthetic plant with an annual capacity of 1.8 million tons of ethanol. At this stage, Huayi Group will test the market absorption rate, he told reporters.

At present, the domestic demand for ethanol reaches 600000 tons per year, so the remaining output can be exported to China. "In the future, the company will focus on downstream, and they will observe the upstream market. At present, China needs a large amount of ethanol, and I think Shanghai Huayi will lay the foundation for the plant this year or at the latest 2019. " Sigit claims Huayi Group is still carrying out feasibility study and plans to get results in three weeks. He hoped that domestic enterprises could cooperate with the project. "They are considering three options in the region and are looking for the most effective location." In addition, Huayi Group requires infrastructure support, such as ports and tax incentives, i.e. tax exemptions, he stressed. In his view, the price of gas is no longer a problem, that is, 5.21 US dollars per million cubic meters of British thermal units. "This is the goal of the negotiation, but it may change again. We hope local partners will participate." He added that Bintuni's petrochemical engineering can replace 100 trillion Dun of imported raw materials.

At present, the import of petrochemical products and raw materials reaches 220 trillion guilders per year. Previously, Wandy wanto, deputy general manager of Yunding oil natna private Co., Ltd., said he supported the government's plan to attract investors in the petrochemical industry. Yunding is not an investor. It just introduces investors to invest in China. "In this way, we can work upstream and downstream smoothly." Before that, several large petrochemical enterprises were interested in investment in Bintuni Industrial Park. For example, LG international invited dutafirza to cooperate and invest US $1.3 billion in Bintuni to build a petrochemical plant. Recently, the company is interested in Ferrostaal and Indonesian fertilizer companies, which are also building petrochemical projects in Bintuni. So far, LG international is still waiting for the feasibility study results of fullers and Indonesia fertilizer company.