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Mon,21Apr2014

Pusri Palembang New Plant Construction

PT Pupuk Sriwidjaja targeted that urea II B plant construction at cost of US$ 700 million start on December this year and commence its operations in 2014.  

The plant with daily production capacity of 2. 750 ton urea will be financed by internal fund of the company and loan facility from external parties. In detail, it is 30% internal equity and 70% loan facility.   At present,  the company is waiting for tender from three contractor consortiums.  

The first consortium is PT Rekayasa Industri and Toyo Engineering Corporation (TEC),  second consortium PT Tripatra and Samsung Engineering and third consortium PT Adhi Karya Tbk and Huhan.  

President Director of Pusri Palembang, Eko Sunarko,  said that the company will wait the tender from such consortiums until the end of this month.  These three consortiums,  he said,  will participate in international bid the award of which will be announced in early December 2012.  

"The three contractors will participate in the international tender and the award of contract will be announced in early December.   Later on December, the construction will directly begin," he expressed.  

The original plant of Pusri,  he said,  is now 38 years old,  damaged and consuming considerable amount of gas. With the new urea II B plant to be constructed,  he added,  the company will reduce production cost.  

Moreover, next year, the gas price from contractor to production sharing contract (KKKS) will have reached US$ 5,8 per MMBTU.  At present, gas purchasing price is US$ 3,8 per MMBTU.  

The construction of urea II B plant is one of Pusri’s plan to have four new plants.  The planning for new plant construction, based on company’s forecast, is aimed at fulfilling future demand for fertilizer attributable to increased demand for commodity. The construction of four new plants will predictably cost IDR 24 trillion.  

Other than in Palembang, other urea plants will also be constructed on the land owned by PT Pupuk Kujang in Bojonegoro, PT Petrokimia Gresik in Gresik, and PKT V urea plant of PT Pupuk Kaltim. 

 

Source: http://www. tender-indonesia. com