JAKARTA (TheInsiderStories) - PT Pupuk Indonesia Energy (PI Energy), a subsidiary of state owned fertilizer company PT Pupuk Indonesia, plans to build Aceh-Cikampek Coal Fired Power and Steam Plant (CFPSP) project with estimated investment of US$350 million following the construction of a power plant that has been taken place in Gresik, East Java.
The capacity for each of power plant in Aceh and in Cikampek amounted TPH 2×150 tons of steam per hour and 1×25 megawatt energy (MWe). The construction of the project is planned to begin this year.
With the construction of the two thermal power plants in Cikampek and Aceh, is expected the availability supplies of utilities for needs the factory can reach the energy-mix gas and coal the utilization optimally.
The thermal power plant in Cikampek will have a capacity of 2×150 tons of steam per hour to supply raw materials to Pupuk Kujang. The plant in Aceh will have a power capacity of 25 MW and a steam capacity of 2×170 tons per hour to be supplied to Pupuk Iskandar Muda.
President director of PI Energy Tentaminarto TF said, the company’s focus is to building co-generation power plants that generate can electricity and feedstock at the same time delivering supplies to fertilizer factories.
On July 27, PI Energy has signed a loan agreement $63.5 million with PT Bank Sumitomo Mitsui Indonesia Bank for Gresik Gas Co-generation Power Plant project. The tenor of debt eight years and can be renewed after three years.
The unit of State-owned fertilizer producer PT Pupuk Indonesia Holding Company (PIHC) is currently building a gas power plant with a power capacity of 22 MW and a steam output of 160 tons per hour in Gresik with total cost $90 million. The plant is expected to start operating commercially in November 2017.
The group has plans to issue local bonds worth Rp10 trillion in the first quarter of 2017 for debt refinancing and revitalize the plants. The company has earned a rating of ‘AAA’ by Fitch Ratings and now seeks another rating from PEFINDO and Standard & Poor’s.
“We will use the funds for debt refinancing and revitalize our fertilizer plants — Kaltim 5 (East Kalimantan) and Pusri II (South Sumatera,” said Finance Director Indarto Pamoengkas on Tuesday.
He added, Kaltim V needs investment of $590 million and Pusri II $580 million. In addition, the two projects, Pupuk Indonesia also has a plan to develop Amorea 2 plant in East Java with total investment of $500 million.
The construction of Pusri II B plant is expected to be completed and will start commercial production this year. He stressed that the revitalizing and construction of the plants are targeted to be completed by 2017.
Currently, Pupuk Indonesia has production capacity of 14 million tons per annum and expects to reach 19 million tons per year by 2017. The company prepares multi-years investment up to Rp13 trillion to lift up the production capacity.
Recently, Pupuk Indonesia and state owned energy producer PT Pertamina have agreed to set up a joint venture company (JVC) to build petrochemical plant in Indonesia. The new JVC has been established and will start operating this year.
Both companies are planning to build at least three projects, namely Methanol plant in Bunyu Island in East Kalimantan, fertilizer gas plant in Bintuni Bay, West Papua and in Cepu Block in East Java. To build a petrochemical plant from upstream to downstream requires investment of around $1 billion.
This year, the company targets to book net profit and revenues Rp5 trillion and Rp80 trillion respectively from last year the net profit of Rp3.3 trillion and revenues at Rp66 trillion.
The demand of fertilizer is estimated to reach 9.55 million ton this year. (*)