JAKARTA (TheInsiderStories) - PT Surya Eka Perkasa (IDX: ESSA), which owns and operates the second largest privately-owned domestic liquefied petroleum gas (LPG) refinery, has secured a loan facility agreement from Genesis International Holdings Pvt Ltd., Singapore worth US$15 million. The loan agreement was signed on June 7.
Early in February, Surya Esa signed standby letter of credit with PT Bank UOB Indonesia worth $22 million. The loan was used to inject fresh capital to its unit PT Panca Amara Utama (PAU). The unit currently build an ammonia plant to produce 2,000 Ornithine transcarbamylase deficiency (OTD) in Banggai, Central Sulawesi.
The new plant is estimated to need investment of $830 million. Previously, PAU has obtained a standby loan commitment worth $509 million led by International Finance Corporation (IFC). The ammonia plant is expected to start its commercial operation by end of 2017 or early of 2018.
President Director of Surya Eka Perkasa Garibaldi Thohir said the company is concentrating in completing the construction of the ammonia plant. “I have asked (the contractor) to speed up the construction works so as it can play its role in Luwuk. The plant is expected to be completed in 2017 or early 2018,” he said.
PAU’s ammonia plant is being constructed on a land bank of 192 hectares, with an aim to support the government’s directive to provide significant added value to Indonesia’s natural resources, particularly the usage of natural gas as a raw material in the production of ammonia.
Garibaldi explained that the factory will produce ammonia, chemical compound used to produce fertilizers, explosives, acids and other petrochemical products. The facility features an annual production capacity of 700,000 tons, with 55 million standard cubic feet per day (MMSCFD) of natural gas to be supplied from the Senoro – Toili Block, operated by JOB PMTS.
In developing its project, PAU has appointed PT Rekayasa Industri, a renowned state-owned construction company as the primary contractor.
Previously in 2014, PAU secured a US$509 million syndicated loan facility led by the International Finance Corporation (IFC), the reputed private arm of the World Bank, as well as seven international banks.
“IFC’s investment in PAU is the largest in Asia in the last decade and reflects the strong trust towards PAU as well as Indonesia’s investment potential. Additionally, the project supports the use of significant local content for construction – 61 percent of the Project Cost and 87 percent of the Operating Cost will be spent in Indonesia,” explained Vinod.
Surya Esa Perkasa (ESSA) which controls 60 percent of shares in PT Panca Amara Utama was established in 2006. Its main business is the refining and processing of natural gas to produce LPG (liquefied petroleum gas) and Condensate, with its production facility located in Palembang that started commercial operations in 2007.
On February 1, 2012, ESSA became the first LPG refinery to list on the Indonesia Stock Exchange. PAU 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. (*)