トランスパシフィックの総事業費は31 億ドルと、チャンドラ・アスリを上回る。ハシムの出資率は70％、そして日商岩井が10％の出資比率(投資額95 億円)である。トランスパシフィックは、アスリ以上に悲劇的だ。銀行団によるプロジェクトファイナンスの組成が空中分解し、45％進んだところで工事が中断してしまっているのだ。
工事を請け負った日揮とストーンウェブスター(SW)は100％機器を発注済みであり、すでにSW はシンガポールに4 割引で機器を買ってくれるようにシンガポールと持ち掛けているという。最悪の場合、ハシムと日商岩井はプラント2 社と陰鬱な損失分担交渉に臨むことになる。
Indonesian refinery gets new lease on life
By Bill Guerin
JAKARTA - Tuban, a small, sleepy town on East Java's north coast, could be transformed into a powerhouse of Indonesia's biggest petrochemical and refining operations within the next few years, and might also house a regional petrochemical plant.
Construction of the country's first integrated olefins and aromatics facility, the partly built US$2.3 billion Tuban petrochemical complex, will resume this month under a $240 million two-year contract awarded last week by the state oil company, Pertamina.
Pertamina has a 15 percent stake in the project, run by state-managed PT Trans Pacific Petrochemical Indotama. TPPI was 70 percent owned by the Tirtamas Group, a local conglomerate and 20 percent by a Singapore unit of Thailand's Siam Cement PCL, Tuban Petrochemical Pte Ltd. The remaining 10 percent is evenly split between Itochu and Nissho Iwai.
However, the government, through the now defunct Indonesian Bank Restructuring Agency (IBRA), took over the 70 percent stake and controlling interest in Tirtamas, after the group failed to repay a total of Rp 4.1 trillion (nearly $478 million at the current exchange rate) in debts to several local banks. Tirtamas had been one of IBRA's 21 largest debtors.
The giant complex, designed to produce 3.6 million tons of refined-oil products and aromatics and other products for domestic use, had been originally scheduled to come on stream in mid-1999. Work on the plant, which is only 40 percent complete, came to a halt when the economic crisis hit in 1998.
Initial plans for the complex included a 100,000-barrel-per-day (bpd) condensate splitter, a 700,000-ton-per-year naphtha cracker, and a 500,000-ton-per-year paraxylene plant along with associated olefins and aromatics, plus derivative projects including polyethylene, polypropylene, styrene monomer, vinyl acetate monomer and vinyl chloride monomer.
100,000 metric tons of high density polyethylene (HDPE)
300,000 m.t. of low density polyethylene (LDPE)
200,000 m.t. of polypropylene (PP)
500,000 m.t. of styrene monomer per year.
the project was never completed, but about US$500
million of shareholder funds were spent, mainly on construction
of the condensate splitter and the aromatics facility. Construction
of the olefin complex was halted and major equipment was sold to
BASF for its cracker joint venture in China.
The domestic aromatics market holds high potential. Pertamina is the only benzene producer, with a capacity of 120,000 tons per year from reformate extraction. Pertamina exports about 70 percent of its benzene production through an agreement with ChevronTexaco.
Domestic consumption of benzene is currently double the listed capacity even without taking into account the export agreement.
A Japanese consortium headed by the Japan Bank for International Cooperation (JBIC) has pledged loans worth $400 million. Sumitomo Mitsui Banking Corp arranged half of the eight-year loans and the other half will come from Mitsui & Co.
State-owned construction firm PT Adhi Karya has been awarded a 35 percent share of the building work and two other local construction firms will share the remainder of the construction contract.
When completed, the facility will have an annual production capacity of 335,000 tons of reformate, 1.1 million tons of kerosene, 189,000 tons of diesel fuel, 500,000 tons of paraxclyene, 100,000 tons of toluene, 120,000 tons of orthoxylene and about a million tons of light naphtha.
An earlier attempt by Pertamina to fund the completion of the project by collateralizing revenue from Central Java's giant Cilacap refinery failed as it breached a "negative pledge" clause in World Bank and International Monetary Fund (IMF) loan agreements, under which the two lenders have first call on future foreign exchange revenue in the event of a financing problem.
Pertamina had used similar offtake agreements to finance a petrochemical plant at Cilacap and to convert parts of the Cilacap and Balongan refineries to produce unleaded petrol but committing Cilacap revenue streams to a totally unrelated project was just not on, said the World Bank.
The Bank also saw Pertamina's plan to take a 15 percent stake in the Tuban project and link up with Saudi investor HiTech International to build a new 250,000 bpd refinery next door, as a ploy to tie up all the country's refining capacity.
The petrochemical project is in line with Pertamina's core business. The state company already supplies 30 percent of demand in the domestic petrochemical market.
Pertamina is also the country's main producer of oil and gas - the main raw material for TPPI's integrated olefin and aromatic plants. The Japanese creditors had been pressing Pertamina to buy a stake in TPPI so the project could be funded.
A precedent had been established under the previous administration when the government had bailed out another petrochemical center, PT Chandra Asri, whose creditors also included Japanese giant trading houses.
In June 2000 the government took a controversial step when president Abdurrahman Wahid instructed IBRA to convert all of its $460 million investments in PT Chandra Asri into equity. The move in effect took over Chandra Asri's debts owed to foreign creditors, including Japanese trading houses.
Chandra Asri's foreign creditors, led by Japan's Marubeni Corp, agreed also to convert $100 million of its loans to Chandra Asri into 20 percent equity. The remaining $700 million loan would be repaid in 12 years.
Wahid's deal with Marubeni was criticized by many analysts on the grounds that it was not transparent and that for the government to take over a private company's debts would set a bad precedent for future debt-restructuring processes. International donors would be less than happy if the money they lent to the government were to be used to bail out the debts of the private sector instead of financing the development of crucial infrastructure in rural areas or to help the poor survive the economic crisis.
TPPI's Japanese shareholders, Itochu and Nissho Iwai, pressed their case with Jakarta until, last September, the government warned that it might end negotiations with the Japanese consortium on the loans to finance the Tuban petrochemical project if the Japanese financiers insisted on more guarantees from the government in the wake of terror attacks in the country.
Pertamina had been accused of trying to retain its downstream monopoly with its earlier plan to build an oil refinery, to process 100,000 barrels of crude oil a day from the Cepu oil block, next door to the stalled Tuban petrochemical plant.
However, its joint-venture partnership with Saudi Arabia's HiTech International Group collapsed after HiTech failed to raise an estimated $250 million needed for financing the project.
This January Iran's state-owned National Iranian Oil Co and Pertamina jointly announced their plan to build and operate a $1 billion oil refinery in East Java. The refinery, which is expected to process up to 150,000 barrels of crude oil a day, will help supply Indonesia's high demand for oil-based fuel and will allow synergies in production with the TPPI plant from 2006 onward.
There are seven oil refineries in Indonesia, with a combined capacity of about 1 million bpd. However, this capacity only covers 80 percent of the country's oil demand, now about 1.2 million bpd. The remaining 20 percent is imported from several countries, including Iran.
A regional petrochemical plant at Tuban could also be in the cards to fulfill the region's increasing demand for raw materials for manufacturing plastic products, while also raising the region's competitiveness in the global plastics market.
The Indonesian Olefin and Plastics Industry Association (Inaplas) has proposed that members of the Association of Southeast Asian Nations (ASEAN) jointly build a petrochemical plant for the region. A proposal for the plant was submitted by Inaplas to a recent ASEAN Federation of Plastics Industries (AFPI) meeting in Thailand.
Inaplas secretary general Budi Susanto Sadiman said the plant could produce a million tons of ethylene and 1.5 million tonnes of propylene every year. The same plant could process the two gases further into polyethylene and polypropylene, the main raw materials for plastic products.
Demand for polyethylene and polypropylene in the Asia-Pacific region reached 18.1 million tonnes and 15.3 million tonnes respectively last year, though production was only 17.4 million tonnes and 15.1 million tonnes.
Domestic demand for polyethylene was 578,000 tonnes and for polypropylene 741,000 tonnes, though production was only 445,000 tonnes and 475,000 tons respectively.
Demand for both products is estimated to increase by an average of 5 percent per year until 2008, according to Inaplas.
Production of ethylene and propylene requires adequate supplies of naphtha or natural-gas condensates, both of which will be on stream in East Java.
Engineering News August 11, 1997
CHEMICAL BOOM IN INDONESIA
Bank of America became heavily involved in Indonesia's chemical sector last year as a financial adviser to Trans-Pacific Petrochemical Indotama (TPPI), a new company that is building a $2.3 billion petrochemical complex in Tuban, on the northeast coast of Java. The complex will require more than $3 billion in investment if downstream facilities are included. TPPI will feature Indonesia's second ethylene complex. The first, Chandra Asri, near Merak, came on-line in 1995 after enduring long delays during its construction.
About 75% of TPPI's planned facilities will be financed by international loans, and much of them will be underwritten by BA Asia, a Bank of America merchant banking arm. Robert A. Johnson, a Hong Kong-based chemical engineer and BA Asia project financier, comments, "We have loan commitments for $1 billion already." He adds that construction is under way, with the facility scheduled to start operating in 1999. He expects no delay or interference from authorities.
TPPI's Tuban project is impressive. Within three years--on what until recently was a greenfield site devoid of significant infrastructure--an integrated petrochemical facility will be producing olefins, aromatics, and downstream chemicals. Initially, ethylene output will be 1.5 billion lb per year. According to Johnson, TPPI will meet about two-thirds of its feedstock requirements by using condensate from Pertamina, the state-owned oil company. This is unlike the Chandra Asri complex, which uses mostly imported naphtha to make ethylene.
The main sponsor of TPPI, with a 70% stake, is the Tirtamas Group, a large Indonesian conglomerate with close ties to the family of Indonesian President Suharto. Another 20% stake is owned by Siam Cement, Thailand's largest business group. The other partners are Japanese trading companies Nissho Iwai and Itochu, which have a central role in orchestrating the downstream portion of the project. The U.S.'s Koch Refining is also likely to acquire some equity, says Johnson. Engineering will be mostly by U.S. firm Stone & Webster.
A seemingly well-thought-out project such as TPPI's in Tuban gives Indonesia's chemical industry an aura of reassuring familiarity. Much like most successfully financed projects around the world, it is built on the conservative assumption of no tariff protection, says Johnson. Moreover, its justification is a combination of familiar rationales: market, feedstock, and integrated design. Johnson is convinced TPPI will be one of the most cost-competitive complexes in the world.
Chandra Asri is probably most illustrative of the difficulties that the country's chemical industry has had to suffer. The government halted construction of the complex for almost two years after all the necessary funds had been borrowed. That two-year delay was costly--$500 million is the company's estimate for losses, including currency fluctuations, interest, and lost revenue.