Pupuk Sriwidjaja Palembang, a subsidiary of state-owned Pupuk Indonesia (Persero), has signed the funding credit and engineering procurement construction (EPC) agreement to build the Pusri-IIIB ammonia and urea plant in Palembang.
The Pusri-IIIB plant is likely to have a production capacity of 1,350 t/day or 445,000 t/yr for ammonia, and 2,750 t/d or 907,500 t/yr for urea.
The agreement was signed with Wuhuan Engineering and Adhi Karya (Persero) Tbh for the implementation of construction works, while funding will be carried out through a syndication mechanism consisting of eight state-owned and private-sector companies.
The president director of Pupuk Indonesia, Rahmad Pribadi, said that the revitalisation of Pusri-IIIB will utilise latest production technology to increase the reliability of fertilizer production. Old Pusri-III and IV factories will be replaced with the Pusri-IIIB factory's new technology to boost operational excellence. The Pusri-IIIB plant is more efficient, with an energy ratio for producing urea at 21.97 mnBtu/t, and 32.89 mnBtu/t for ammonia.
Pusri-IIIB will be built at the Pusri complex with low-energy technology intended to reduce natural gas consumption, Pusri's main director, Tri Wahyudi Saleh, said.
The company has not yet provided a date for the start of commercial operations at the Pusri-IIIB plant.
