C. Sulawesi ammonia plant starts conctruction

President Joko Widodo inaugurated on Sunday the ground breaking of a US$830 million ammonia plant in Banggai Regency, Central Sulawesi, owned by PT Panca Amara Utama (PAU), a subsidiary of IDX-listed PT Surya Esa Perkasa Tbk.

Surya Esa said in a statement that the President also inaugurated projects owned by state-owned oil and gas firm PT Pertamina and partners grouped under Pertamina Integrated Mega Project.

President Director of PAU Garibaldi Tohir said that the ammonia plant will have a production capacity of 700,000 tons per year, and will receive gas supply from the Senoro-Toili block at a volume of 55 mmscfd.

PAU appoints state-owned engineering and construction firm PT Rekayasa Industri as the main contractor for the project, which utilizes what is claimed as the most sophisticated and fuel-efficient technology called KBR Reforming Exchanger System (KRES) and Purifier from US-based Kellog Brown & Root.

PAU Executive Director Vinod Laroya said that the company last year obtained $509 million loan from the International Finance Corporation and seven other international banks to help finance the ammonia plant project.

Editing by Reiner Simanjuntak