MGC to take part in RI ammonia production project
Thursday, October 20 2016 - 08:16 AM WIB
Mitsubishi Gas Chemical Company Inc. (MGC) said Thursday it has agreed to take part in an ammonia plant project being implemented in Indonesia by PT Panca Amara Utama (PAU), a joint venture by local capital and Mitsubishi Corporation, through an investment vehicle.
Produced primarily from natural gas, ammonia is used in a broad range of applications including use in the production of fertilizers and chemicals, as well as in denitration at thermal power plants. Worldwide demand for ammonia, which now totals approximately 180 million tons per year, is expected to grow while being driven primarily by fertilizer uses.
MGC said in a statement that since discontinuing its ammonia production toward the end of July 2015, the company has continued to distribute ammonia to customers and produce derivatives, using purchased ammonia. By participating in the Indonesian project, MGC said it will not only ensure a stable supply of ammonia, but also, through an investment vehicle, help PAU, a producer of ammonia mainly using Indonesian natural gas, achieve stable management of ammonia.
PAU is currently completing the construction of an ammonia plant which 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. Start of commercial operation is target at the end of 2017.
Editing by Reiner Simanjuntak