Indonesia's PGN to supply gas to Lotte Chemical petrochemical plant

LOTTE CHEMICAL

15/06/2023 10:59

JAKARTA, June 15 (Reuters) - Indonesia's
state-controlled gas company Perusahaan Gas Negara (PGN) on
Thursday said it would supply natural gas to a petrochemical
plant operated by a unit of South Korea's Lotte Chemical Corp
 011170.KS .
    PGN signed a gas sales agreement with Lotte Chemical
Indonesia (LCI) to supply between 2.62 billion and 10.5 billion
British thermal units per day (BBTUD) to power Lotte's plant to
produce ethylene, PGN said.
    "PGN will build MRS gas distribution infrastructure and gas
pipelines to LCI's boiler for gas starting June 2024," PGN
official Sonny Rahmawan Abdi said in a statement.
    Lotte Chemical last year said it was building a $3.9 billion
petrochemical complex in Indonesia's Banten province to annually
produce 1 million tonnes of ethylene, 520,000 tonnes of
propylene, 250,000 tons of polypropylene, as well as downstream
products.

 (Reporting by Fransiska Nangoy, Bernadette Christina; Editing
by Martin Petty)
 ((Fransiska.Nangoy@thomsonreuters.com;))