Indonesia's state-owned oil and gas company Pertamina has signed sales and purchase agreements with PTT Polymer Marketing, a unit of Thailand's PTT Global Chemical, for polyethylene and polypropylene products, a Pertamina official said Tuesday.
Pertamina will receive 5,000 mt of polyethylene and polypropylene a month from PTT Polymer Marketing until both companies set up a joint venture company, Pertamina's communications vice president, Ali Mundakir, said in a statement.
The signing of the agreements is part of Pertamina and PTT Global Chemical's plan to develop a petrochemical business, Mundakir said, adding that the joint venture company would market the products domestically.
Pertamina aims to set up the joint venture company with PTT Global Chemical at the end of 2013 in a bid to speed up future projects development. Pertamina will have a minimum stake of 51% in the joint venture, Platts reported previously.
Initially Pertamina will build a 1 million mt/year naphtha cracker plant slated to come on stream in 2017. Once construction is complete, Pertamina aims to secure a 30% share of Indonesia's petrochemicals market, progressing to 80% by 2025.
Indonesia's petrochemical imports are estimated at $5 billion/year, while Pertamina only supplies about 10% of domestic petrochemical needs.
