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011170 — LOTTE CHEMICAL News Story

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Lotte Chemical shuts newly-commissioned Indonesia cracker due to tech issue, sources say

SINGAPORE, June 4 (Reuters) - Lotte Chemical 011170.KS has shut its newly-commissioned steam cracker at Cilegon, Indonesia due to technical issues, three sources familiar with the matter said on Wednesday.

The unit should be restarted within the next 1-2 weeks, after it was shut over the weekend, the sources said, adding that it was due to a compressor issue.

Lotte Chemical did not immediately respond to a Reuters request for comment.

The company has yet to achieve on-spec production of ethylene, a key building block for petrochemicals, since the unit started up on May 20, the sources added.

The unit can produce 1 million tons per year (tpy) of ethylene by processing naphtha and liquefied petroleum gas.

 (Reporting by Trixie Yap; additional reporting by Mohi Narayan; Editing by Louise Heavens)

 ((trixie.yap@thomsonreuters.com;))

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