Indonesian petrochemical and gasoline producer TPPI will increase its aromatics capacity by 30pc by the end of 2021 through a planned $180mn overhaul and maintenance programme.
Paraxylene (PX) extraction capacity at TPPI's complex in Tuban, Java will increase from 600,000 t/yr to 780,000 t/yr, while benzene production capacity will rise from 360,000 t/yr to 490,000 t/yr. The company expects the expanded units to start production in early 2022.
The project will also expand an upstream platforming unit, raising reforming capacity by 5,000-10,000 b/d to 55,000 b/d. TPPI will need to buy heavy naphtha or additional condensate to operate the facility at full capacity following the expansion.
The expansion is the result of TPPI's need to replace existing equipment, which is coming to the end of its lifespan, with newer and more efficient facilities that will raise overall capacity.
TPPI will resume aromatics production at the end of this month at the expense of gasoline under its third-party processing agreement with state-owned refiner Pertamina.
TPPI has been focused on gasoline production since August 2019 because of expectations that aromatics margins would narrow. But Indonesian gasoline demand has fallen since the government imposed travel restrictions in April to curb the Covid-19 outbreak.
PX production margins have been at around $150/t for the past three months because of weak demand and oversupply. The cfr China/Taiwan PX price was at $530.67/t yesterday, while the premium to cfr Japan naphtha prices was at $128/t, according to Argus data.
