Indonesia’s Chandra Asri reconfigures CAP-2 project; to start with CA-EDC plant

SINGAPORE (ICIS)–Indonesian producer Chandra Asri is reconfiguring how it develops its second petrochemical complex project (CAP-2), a company spokesperson told ICIS on Monday.

The CAP-2 project’s commencement will now begin with downstream units, starting with a chlor alkali – ethylene dichloride (CA-EDC) plant in Cilegon, company corporate director Suryandi said.

Chandra Asri, whose operations are based in Banten, Cilegon province, is currently Indonesia’s sole cracker operator.

Its CA-EDC project, which will be operated by its subsidiary Chandra Asri Alkali, will be able to produce 400,000 tonnes/year of caustic soda and 500,000 tonnes/year of EDC.

Construction will begin in the early second half of 2025 and will take around two years to complete, according to Suryandi.

Start-up will be pushed back to 2027 from the previous target of end-2026.

“We are mindful of the challenges posed by global market volatility and Indonesia’s petrochemical industry. As a result, the CAP-2 Project is currently being reconfigured,” Suryandi said.

The move follows Chandra Asri’s tie-up with trading firm Glencore to acquire the Singapore petrochemical assets of Anglo-Dutch energy giant Shell.

Suryandi added that the CA-EDC plant will be integrated into Chandra Asri’s existing petrochemical complex and will utilize ethylene produced by the facility.

“With the establishment of the CA-EDC plant, the company reaffirms its commitment to reducing Indonesia’s dependence on Chlor Alkali imports and contributing to the supply of EDC, which currently faces a regional deficit,” he added.

Chandra Asri in its initial plans said that the CAP-2 complex will increase the company’s annual overall production capacity to more than 8 million tonnes from 4.2 million tonnes.

Based on the original plan, the CAP-2 complex would include a new naphtha cracker as well as downstream units including butadiene, an aromatics recovery plant, high density polyethylene (HDPE) plant and a low density polyethylene (LDPE) plant and a polypropylene (PP) plant.

The LDPE plant was to be the first in Indonesia.

Thumbnail image: Chandra Asri’s petrochemical manufacturing site in Cilegon, Banten province, Indonesia (Source: Chandra Asri website)