Duta Firza, LG to build petrochemical complex near Tangguh project
Thursday, March 29 2012 - 01:28 AM WIB
On Wednesday, the two companies signed a heads of agreement (HOA) in Seoul, Korea, witnessed by Industry Minister MS Hidayat and Trade Minister Gita Wirjawan.
?The cooperation will cover pre-planning, pre-feasibility studies and the construction of the complex,? said Duta Firza's Chief Executive Officer Firlie Ganinduto after the signing as reported in a press statement.
The pre-planning phase included securing gas supply from the Tangguh field, seeking financing for the project, looking for buyers for the petrochemical products and appointing contractors for the engineering, procurement and construction (EPC) project, he said.
Firlie said his company and LG International would establish a joint venture company. The planned company would construct and operate the complex, he added.
The pre-planning and pre-feasibility study phases were expected to be completed in the third quarter of 2012, Firlie said. The follow up of those early phases will be conducted in the first quarter of 2013, while the ground-breaking will take place in mid 2014.
?The factory will utilize gas supply from Tangguh, particularly from the planned third and fourth trains of gas liquefaction and purification facilities] which are expected to begin commercial operations in 2017. Thus, we hope we can operate the complex by late 2017 or early 2018,? Firlie said.
Separately, upstream authority BPMigas spokesperson Gde Pradnyana revealed that part of the third train would be allocated for petrochemical factories, however there was no firm commitment yet that the supply was for Duta Firza and LG.
The Industry Ministry estimates that the first phase of the petrochemical industrial estate will require around 382 mmscfd of gas to fuel two urea plants with a total production capacity of 3,500 tons per day, two ammonia plants with a production capacity of 2,000 tons per day and a methanol plant Meanwhile, the second phase of the project will need around 200 mmscfd of gas to develop a diesel plant. (*)