PT Surya Esa Perkasa Tbk. ("SEP") is proposing to build a 2,090 metric tons per day (MTPD) capacity greenfield ammonia plant near Uso Village, Luwuk City, Central Sulawesi Province, Indonesia, which will utilize natural gas from the Donggi Senoro (DS) gas fields in Central Sulawesi province ("the Project"). The plant will be established through PT Panca Amara Utama ("PAU"), a 60% subsidiary of SEP (to be diluted to about 51% on Project completion) and will be the first ammonia plant in Sulawesi and the third privately owned ammonia plant in Indonesia. IFC is proposing to provide a loan to PAU and taking equity in the Project.PAU has entered into an extendable 13 year gas supply contract with DS from 2015 to 2027. DS gas fields have allocated 55 million metric standard cubic feet per day (MMSCFD) of natural gas to PAU, 250 MMSCFD to PT DSLNG, a private sector liquefied natural gas (LNG) producer located adjacent to the proposed PAU site, and about 5 MMSCFD to PLN, the national electric company. DSLNG is the de-facto anchor plant of the DS gas fields. The proposed project includes the ammonia synthesis installation, ammonia storage tank farm, a jetty to export the ammonia, power plant, and other utilities. The natural gas will be supplied from neighboring DSLNG and thus a gas pipeline will not be required. There will be only one or two ships that dock at the jetty per week for ammonia transportation.PAU has 180 hectares of land to accommodate the Project and is purchasing an additional 20 hectares of land that are currently scattered within the 180 hectares to form an industrial complex for future development; this may include the manufacture of downstream ammonia products. The land preparation for the Project site is expected to start in March 2013, construction in October 2013 and Project commissioning by August 2015.
The Project cost has been estimated to be US$750 million and will be financed by up to US$500 million of senior debt and US$250 million of equity. IFC is expected to invest up to US$125 million in the form of debt and equity, to finance part of the Project. In addition to the above investment, IFC plans to mobilize up to US$400 million of senior debt from other banks.
The Company is 60% owned by PT Surya Esa Perkasa Tbk. (“SEP”), a company that is listed on the Indonesian stock exchange. Mr. Theodore Rachmat, Mr. Garibaldi Thohir and Mr. Vinod Laroya (through their shareholding in SEP) and SEP are the key Sponsors of this Project.
Mr. Ashok Baveja, Project Director
PT Panca Amara Utama
16th Floor, Menara Kadin, Jl. Rasuna Said
Blok X-5, Kav. 2-3
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