By Calvin Purba
PT Pupuk Kaltim (PKT), a subsidiary of the state-owned fertilizer company PT Pupuk Indonesia (Persero), is currently preparing permits for the construction of a new fertilizer plant in West Papua. At present, the company is in the process of land acquisition.
"This (new fertilizer plant project) is still in progress, and we are preparing all the necessary permits," said Anggono Wijaya, Vice President of Corporate Communication at PKT, during a media gathering on Saturday (Feb 22).
Anggono stated that construction will commence as soon as all permits have been secured. He is optimistic that the plant will be completed by 2028.
“The project execution will take place once the permits and land acquisition are completed. Of course, we want to expedite the process. That’s the optimistic goal (2028).” Anggono said.
Regarding the gas supply, Anggono confirmed that a gas sales agreement (GSA) has been signed with Genting Oil Kasuri Pte Ltd, the operator of the Kasuri Block in Teluk Bintuni, West Papua.
“The GSA has been signed. The gas sales agreement is already in place,” said Anggono when asked by Petromindo.com.
Read also : Pupuk Kaltim and Pertamina sign gas sales agreement
In August last year, PKT and Genting were focusing on fulfilling the conditions under a 17-year gas sale and purchase agreement (Conditional GSA). Under this agreement, Genting Oil Kasuri will supply 101 million standard cubic feet per day (MMscfd) of natural gas to an ammonia and urea plant, which is planned to be constructed by PKT in West Papua. The allocated natural gas will be sufficient to meet the plant's entire needs.
“It is fully covered,” said Anggono.
At the same time, discussions are ongoing for a gas sale and purchase agreement between Genting and PT Layar Nusantara Gas (PTLNG), an indirect subsidiary of Genting Oil Kasuri, for the offtake of natural gas.
PTLNG had already signed an Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) contract with the Chinese firm Wison New Energies Co., Ltd. on June 20, 2024, for the construction of a floating liquefied natural gas (FLNG) facility. This facility will be the first FLNG in Indonesia and the ninth globally, designed to offtake natural gas supplies from the Kasuri block. The FLNG will have a capacity of 1.2 million tonnes per annum (MTPA), with a startup date expected in late 2026.
Editing by Reiner Simanjuntak
