Jakarta (ANTARA) - State-owned fertilizer holding company PT Pupuk Indonesia (Persero) has set aside US$670 million to revitalize the IIIB plant of state fertilizer firm PT Pupuk Sriwijaya (Pusri) in Palembang, South Sumatra.
The move is aimed at increasing the plant’s production capacity to 907 thousand tons of urea fertilizer and 445 thousand tons of ammonia fertilizer per year.
"If we refer to the previous tenders with the same capacity, the project will cost US$500 million. But because of other costs, including financing costs, we have set aside (funds) to the tune of US$670 million,” Pupuk Indonesia president director Bakir Pasaman said in a meeting with Commission VI of the House of Representatives (DPR) here on Thursday.
The project will be funded through a self-financing scheme and bank loans, he informed. It will commence in March, 2022 and is targeted to be complete by June, 2025, he added.
The revitalization of the Pusri IIIB plant is aimed at increasing production capacity and making efficient use of gas in the production process, which will have an impact on the economic value, Pasaman informed.
Through the cost efficiency, Pasaman said he is seeking to increase the sales of PT Pupuk Indonesia’s products, including subsidized fertilizers and commercial fertilizers, in the export market.
To meet its gas needs, Pusri has signed several memorandums of understanding (MoUs) based on recommendations from the Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas). The gas needs of the new plant are projected to reach 71 BBTUD (Billion British Thermal Units Per Day).
“We have signed MoUs to ensure gas supply for 20 years. In this regard, we have received support from the Energy and Mineral Resources Ministry and SKK Migas. On June 17, 2021, we have signed MoUs with Petrochina Jabung and Repsol Sakakemang," Pasaman said. (INE)
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