JAKARTA, May 26 (Reuters) - Procter & Gamble Chemicals will purchase up to$2 billion worth of fatty acids and fatty alcohols from Indonesia over thenext 10 years, a company official said on Thursday."The export value of the contract over 10 years will depend on marketconditions. My estimates are, over 10 years the value of the contract willprobably (be between) $1.7-$2.0 billion," said Martin Herrington, managingdirector for P&G Chemicals Asia.

P&G said the more than 200,000 tonnes a year of oleochemicals purchasedfrom Indonesia's Domba Mas Group would be used as raw materials in Procter& Gamble beauty and fabric care factories around the world.

Of the 200,000 tonnes, 160,000 would be in form of fatty alcohols and theremainder fatty acid and glycerine.

Most of the fatty alcohols would come from PT Sawitmas Agro Perkasa, aunit of Domba Mas Group, while 40,000 tonnes would be produced by PT DomasAgrointi Prima.

"This comprises 15-20 percent of oleochemical products acquired by P&Gfrom all over the world," Herrington said.

The oleochemical products will come from a new Domba Mas Group site inNorth Sumatra.

"The start-up of this site will make Indonesia the world's largestcapacity of natural fatty alcohol," P&G said in a statement.P&G Chemicals is a fully owned business unit of Procter & Gamble Company ,a major U.S. consumer products firm.

Domba Mas Group had a total more than 100,000 hectares of palm oilplantations in Sumatra and operated several crude palm oil (CPO) factoriesin Riau and North Sumatra, which will be the source material for the fattyacids and alcohols.

It is constructing an integrated oleochemical factory in Kuala Tanjung,southeast of Medan, capital of North Sumatra.