PT Lotte Chemical Indonesia (LCI), a subsidiary of Kuala Lumpur-based Lotte Chemical Titan Holding Berhad, has signed the engineering, procurement and construction (EPC) contracts for an integrated petrochemical facility in Indonesia.

The onshore construction contract for the Lotte Chemical Indonesia New Ethylene (LINE) plant was signed with PT Hein Global Utama, a joint venture between Hyundai Engineering and PT Hans Enjiniring dan Konstruksi, while the offshore engineering and procurement contract was signed with Hyundai.

The EPC works involve the construction of a cracker plant with the capacity to produce 1,000 kilometric tonnes per annum (KTA) of ethylene, and 520 KTA of propylene. The total contract value of this Group A EPC work package is US$757 million.

LCI will also be signing the EPC contracts for Group B and Group C work packages, covering works for the downstream plants and other infrastructure facilities, with Lotte affiliates.

“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 is slated for completion by 2025,” says Lotte Chemical Titan president and chief executive officer Park Hyun Chul.

The large-scale LINE expansion project is located in Merak, Cilegon, Banten, the westernmost province on Indonesia's Java Island. Total investment cost will be around US$3.95 billion. It will serve as the key expansion drive for the company, with the aim to solidify its position as a top-tier petrochemical company in Southeast Asia.