PT Panca Amara Utama (“PAU”) is setting up a 700,000 metric tons per annum (MTPA) greenfield ammonia plant in Banggai Regency, Central Sulawesi, Indonesia (“Project”). PT Rekayasa Industri, a national contractor, was appointed EPC Contractor for the project in June 2015, with construction beginning in September 2015. The plant is expected to begin commercial operations in late 2017. Natural gas for the plant will be supplied by Senoro-Toili gas fields, operated by JOB Pertamina-Medco E&P Tomori Sulawesi.
The Project represents the continued efforts of PAU’s parent company, PT Surya Esa Perkasa Tbk. (“SEP”, ticker: ESSA), to process the country’s natural resources into industrial products domestically. PAU shall become the first ammonia plant in Sulawesi and the second privately-owned plant in Indonesia.
Projected to cost USD 830 million, syndicated debt financing of USD 509 million for the project has been arranged by the International Finance Corporation (“IFC”, member of the World Bank Group). The syndication includes seven international banks, namely ANZ, HSBC, KDB, OCBC, SMBC, Standard Chartered and UOB. IFC shall also take an equity position in PAU in the form of a subordinated loan. This represents the IFC’s largest greenfield project funding in Asia over the last decade.
Technology for the plant has been licensed from Kellogg Brown & Root (USA), and PAU will be the first in the world to apply KBR’s patented KRES + Purifier technology, thereby making Indonesia the first country in the world to leading edge Ammonia technology.