By DEDEN SUDRAJAT
JAKARTA -- Indonesian oil and gas company PT Pertamina said Monday it has appointed Thailand's PTT Global Chemical as its partner to develop its petrochemical business in Southeast Asia's largest economy.
Pertamina is seeking to enter the petrochemical industry as tens of millions of Indonesia's increasingly affluent middle-class will drive up demand substantially.
"Both companies are expected not only to build petrochemical plants but also to cooperate in marketing and research and development," Pertamina president Karen Agustiawan said in a press release.
Pertamina said that PTT Global came on top of 10 other companies competing for the partnership, citing the Thai company as having one of the most sophisticated and integrated refineries with high energy efficiency in the Asia-Pacific region.
It added the agreement is expected to be signed by both companies in early April, before a joint venture will be set up by the end of the year.
Pertamina also said that it will build a 1-million tpy naphtha cracker plant as it takes steps to develop its petrochemical business. The plant is expected to come onstream by 2017.
Dow Jones Newswires