Synergy Of PT Pertamina Patra Niaga And PT Ineos Aromatics Indonesia Strengthens Domestic Petrochemical Market Demand

The growth of the domestic petrochemical product market continues to show a positive trend and demand continues to increase. On the other hand, with the policy to reduce imports of downstream commodity goods for petrochemical products, services for petrochemical products must be fulfilled domestically. This is where PT Pertamina Patra Niaga Sub Holding Commercial & Trading PT Pertamina (Persero) is here to meet the market needs of petrochemical products, one of which is aromatics, namely Paraxylene. 

The spirit of serving the needs of Petrochemical products is contained in PT Pertamina Patra Niaga's strategy, namely Petchem Go to Market, and on this occasion cooperates with PT Ineos Aromatics Indonesia (IAI) in providing Paraxylene needs through the Vendor Held Stock (VHS) Program until December 2022. in a collaboration signed directly by the Marketing & Commercial Director of PT Pertamina Patra Niaga, Riva Siahaan with the President Director of PT Ineos Aromatic Indonesia Frank Xu Yang, Tuesday (8/3) at the Tanjung Gerem Fuel Terminal, Merak.

Central Marketing & Commerce Director of PT Pertamina Patra Niaga, Riva Siahaan said that the VHS Program is a new Paraxylene distribution scheme that will support the smooth and safe supply or certainty of Paraxylene supply for PT Ineos Aromatic Indonesia, thus the production of domestic petrochemical downstream commodities can meet market needs in country. In this collaboration, around 170,000 metric tons (MT) of Paraxylene will be distributed to be processed by PT Ineos Aromatic Indonesia.

“Paraxylene is the basic ingredient for making Purified Terephthalic Acid (PTA). PTA is used to make polyester which is then made into fiber, textiles, films, and PET bottles. With VHS itself, our supply to PT Ineos Aromatic Indonesia will also be more effective and efficient because Pertamina will send and provide storage to PT Ineos Aromatic Indonesia, this supply security is the main key so that production can run optimally and meet domestic PTA needs, "said Riva.

Riva continued, as an energy and storage company, PT Pertamina Patra Niaga also sees this petrochemical market as one of the priority markets for services in 2022. Through the Go Petrochemical Program, PT Pertamina Patra Niaga will commit to running a VHS collaboration with PT Ineos Aromatic Indonesia.

"PT Pertamina Patra Niaga will provide a guaranteed supply of feedstock for PT Ineos Aromatic Indonesia. We are committed to carrying out this collaboration well and hope that together we will develop and strengthen the role of fulfilling domestic petrochemical products while providing a positive impact on the community, and becoming a tangible form of the role of the industrial sector in supporting the government in accelerating national economic growth," concluded Riva. 

On the same occasion, President Director of PT Ineos Aromatic Indonesia Frank Xu Yang also welcomed the VHS Program for distributing Paraxylene for his company's needs in producing PTA needs to strengthen the national supply chain. Coupled with his belief in the growth of the Indonesian polyester market, production and distribution must be ensured to run optimally.

“INEOS is a global producer of petrochemicals, and PTA is one of our products. Our recently completed USD 70 Million investment for the modernization of our PTA factory in Merak demonstrates our commitment to increasing the supply and competitiveness of the Indonesian polyester industry. In the last 25 years or so, INEOS' PTA plant in Merak has played an important role in ensuring the supply of PTA for Indonesia. I hope that with this VHS Program, we will receive Paraxylene supplies in a timely and consistent manner. I hope to continue to advance this business with Pertamina and Indonesia,” added Frank.