Lotte signs ethylene supply contract

PETALING JAYA: Lotte Chemical Titan Holding Bhd’s (LCTH) subsidiary PT Lotte Chemical Indonesia (LCI) has signed a ten-year sale and purchase agreement from July 1, 2025 to June 30, 2035 with PT Asahimas Chemical for the supply of approximately 150,000 tonnes per annum of ethylene to Asahimas.

In a filing with Bursa Malaysia, the petrochemical company said the pricing is based on market price and the total value of the contract is expected to exceed 10% of LCTH’s latest annual published consolidated revenue.

“The contract is expected to contribute to the revenue of LCTH and its group of companies for the financial years ending Dec 31, 2025 to Dec 31, 2035.

“The contract will not have any effect on the share capital and shareholding structure of LCTH.”

The company said LCI is the new development company undertaking the construction of the petrochemical facility known as the Lotte Chemical Indonesia New Ethylene project, which is expected to be completed in the second half of 2025 with the capacity to produce one million tonnes of ethylene.

“Some of the ethylene produced will be consumed internally and some will be sold to the market.”

Asahimas is an integrated chemical company producing basic chemicals for downstream industries in Indonesia.