TAIPEI (Taiwan News) – State-owned CPC Corporation, Taiwan (中油) plans to take part in investments in India totaling NT$17 billion (US$567 million) and restart a naphtha cracker in Indonesia, two nations targeted by the government’s New Southbound Policy (新南向政策), reports said Wednesday.
The administration of President Tsai Ing-wen (蔡英文) designed the policy to intensify relations in various domains with the nations of South Asia and Southeast Asia as well as Australia and New Zealand.
In late 2015, CPC shut down its fifth naphtha cracker in Kaohsiung and started looking for an overseas location to restart it, with India and Indonesia reportedly both vying for the deal, the Chinese-language Liberty Times reported lawmakers as saying. They added that CPC had signed memorandums of understanding (MOU) with both countries.
However, on Wednesday, Economics Minister Shen Jong-chin (沈榮津) told the Legislative Yuan that Indonesia would be the new location for the fifth naphtha cracker, while India was likely to win a separate NT$17 billion investment deal.
CPC would complete its assessment for moving its plant to Indonesia in January, Shen said, adding that the project was virtually a certainty.
The MOU with India was different as it dealt with a completely new petrochemical zone, according to the minister. While the project was still under review, Shen noted that Taiwan’s oil sector was highly interested in doing business in the South Asian giant. The CPC project was likely to be sited in Mundra, a special economic zone in Premier Narendra Modi’s home state of Gujarat, the Liberty Times reported.