KUALA LUMPUR: LOTTE Chemical Titan Holding Bhd's (LCT) Indonesian subsidiary PT LOTTE Chemical Indonesia (LCI) is completing the awarding process for its new integrated petrochemical facility in Indonesia, known as the Lotte Chemical Indonesia New Ethylene (LINE) Project.
It said LCI will be signing an onshore construction contract with PT HEIN Global Utama, a joint venture between Hyundai Engineering Co Ltd (Hyundai) and PT Hans Enjiniring dan Konstruksi.
In addition, an offshore engineering and procurement contract will be inked with Hyundai, the chemicals company said in a statement today.
The engineering, procurement, and construction (EPC) works under the Group A work package, worth RM3.1 billion (US$757.2 million), comprises the construction of a cracker plant with the capacity to produce, among others, 1,000 kilometric tonnes per annum (KTA) of ethylene and 520 KTA of propylene.
LCI will also be signing the EPC contracts for Group B and Group C work packages for the LINE Project, covering works for the downstream plants and other infrastructure facilities.
It said the onshore construction contract will be signed with LOTTE Engineering & Construction Co Ltd (LEC) and PT Jaya Teknik Konstruksi, while the offshore engineering and procurement contract will be with LEC.
"With the latest development, all the pivotal aspects of the construction of the Indonesia LINE Project (i.e. the cracker, downstream plants, infrastructure facilities, etc) are now in place and we are set to commence the full project construction this year and the project will be slated for completion by 2025," said LCT president and chief executive officer Park Hyun Chul.
The LINE Project, with an investment value in the range of RM17 billion (US$3.95 Billion), is a joint venture with its parent company, LOTTE Chemical Corporation that will serve as a key expansion drive for the company with the aim of solidifying its position as a top tier petrochemical company in the Southeast Asia region.
– BERNAMA
TAGS: LCT, Indonesia, LINE Project, Onshore Construction Contract, EPC, Park Hyun Chul