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Mitsubishi Gas Chemical taking part in Indonesia US$830m amonia project

JAKARTA (RAMBUENERGY.com) – Mitsubishi Gas Chemical Company, Inc. (MGC; Head Office: Chiyoda-ku, Tokyo; President:  Toshikiyo Kurai) has agreed to take part in the 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.

Since discontinuing its ammonia production toward the end of July 2015, MGC has continued to distribute ammonia to customers and produce derivatives, using purchased ammonia.

“By participating in the Indonesian project, MGC 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,” it said.

PAU, which is 60% controlled by Surya Esa Perkasa, will construct a fertilizer factory through the use of natural gas from the Senoro-Toili (Donggi-Senoro) gas field in Central Sulawesi, and receive 55 MMSCFD worth of gas supply from JOB Pertamina-Medco E&P Tomori Sulawesi to produce ammonia.

Project overview :
– Company name: PT. Panca Amara Utama
– Plant location: Banggai Regency, Sulawesi Island, Indonesia
– Product: Ammonia
– Production quantity: Approximately 700,000 T/Y
– Total project cost: US$ 830 million
– Start of commercial operation: End of 2017

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