{"id":6809,"date":"2025-11-19T09:00:00","date_gmt":"2025-11-19T17:00:00","guid":{"rendered":"http:\/\/54.162.83.219\/?p=6809"},"modified":"2025-11-18T22:30:09","modified_gmt":"2025-11-19T06:30:09","slug":"lotte-chemical-us-lpg","status":"publish","type":"post","link":"https:\/\/guru.today\/?p=6809","title":{"rendered":"Lotte Chemical to Use U.S. LPG at New Indonesia Plant, Backing Washington\u2013Jakarta Tariff Deal"},"content":{"rendered":"\n<figure class=\"wp-block-image alignwide size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"562\" src=\"http:\/\/54.162.83.219\/wp-content\/uploads\/Lotte-Chemical-1024x562.jpg\" alt=\"\" class=\"wp-image-6812\" srcset=\"https:\/\/guru.today\/wp-content\/uploads\/Lotte-Chemical-1024x562.jpg 1024w, https:\/\/guru.today\/wp-content\/uploads\/Lotte-Chemical-300x165.jpg 300w, https:\/\/guru.today\/wp-content\/uploads\/Lotte-Chemical-768x421.jpg 768w, https:\/\/guru.today\/wp-content\/uploads\/Lotte-Chemical.jpg 1391w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">(Photo=Lotte Chemical)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>South Korea\u2019s Lotte Chemical plans to source U.S. liquefied petroleum gas (LPG) for its newly completed petrochemical complex in Indonesia \u2014 a move expected to improve cost efficiency while supporting a recent tariff-reduction agreement between Washington and Jakarta.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>According to Bloomberg, Indonesia\u2019s Coordinating Minister for Economic Affairs Airlangga Hartarto said Lotte Chemical has applied to import roughly 1.3 million tons of U.S. LPG, as part of a 5.5 million-ton quota allocated to the private sector. The application is currently awaiting regulatory approval.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The company\u2019s new facility \u2014 known as the LINE Project \u2014 centers on a naphtha cracker capable of processing both naphtha and LPG into core petrochemical products such as ethylene and propylene. <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>While naphtha remains the primary feedstock, the plant can substitute up to 50% of its input with LPG, enabling Lotte Chemical to reduce production costs and adjust output based on market conditions. This flexibility also allows the company to optimize yields of ethylene and by-products.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Indonesian officials say expanded use of U.S. LPG could help cut broader crude-derived feedstock imports. The government estimates that dual use of naphtha and LPG at the complex could offset as much as $1.4 billion in petroleum-related imports each year.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The move also aligns with a new U.S.\u2013Indonesia trade deal that reduces import tariffs on LPG and gasoline from 32% to 19%, in exchange for Jakarta agreeing to source roughly $15 billion in fuel products from the United States. The agreement offers Indonesia cheaper energy inputs while ensuring stable long-term demand for American exporters.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>For Lotte Chemical, securing competitively priced U.S. LPG strengthens the economics of its new Indonesian investment. The LINE Project \u2014 located in Cilegon, Banten Province \u2014 represents a $3.95 billion build-out of an integrated petrochemical hub. <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Completed in May and inaugurated earlier this month, the complex will produce 1 million tons of ethylene, 520,000 tons of propylene, 350,000 tons of polypropylene, 140,000 tons of butadiene, and 400,000 tons of BTX annually.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Industry analysts say the mix of flexible feedstock options, tariff reductions, and reliable U.S. supply could make the Indonesia complex one of Lotte Chemical\u2019s most strategically important overseas assets, strengthening the company\u2019s competitiveness in the Asia-Pacific petrochemical market.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Korea\u2019s Lotte Chemical plans to source U.S. liquefied petroleum gas (LPG) for its newly completed petrochemical complex<\/p>\n","protected":false},"author":7,"featured_media":6812,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[38,28,54],"tags":[],"class_list":["post-6809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-stories","category-biz-beyond","category-top-section"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Lotte Chemical Turns to U.S. LPG for New Indonesia Plant<\/title>\n<meta name=\"description\" content=\"Lotte Chemical will use U.S. LPG at its new Indonesia complex, aligning with a tariff deal that cuts costs and strengthens its petrochemical competitiveness.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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