It is reported that the Sulawesi device is planned to be built near the Donggi-Senoro gas field and the Papua equipment is planned to be built near the Tangguh gas field.
However, the person in charge said that the construction of two sets of equipment must be approved by the government, and only the government agreed to provide natural gas for the two sets of equipment, and the project can be officially started.
In recent years, Indonesia's fertilizer industry has been limited by the shortage of natural gas raw materials and has not achieved great development. Most of the natural gas is exported to foreign exchange. Although the government has taken measures to supply gas to the industrial sector, it has often benefited from some power companies, all of which are aimed at reducing the cost of generating electricity from oil.
Insufficient supply of natural gas has led to Indonesia's ammonia utilization rate at around 80% to 85%. Indonesia's domestic fertilizer companies have repeatedly called on the government to act as a middleman, adjusting the interests of natural gas supply and demand sides and reaching agreement on price and quantity. The state-owned gas sales company has also called for the government to liberalize import rights and import natural gas from Qatar to make up for the domestic shortfall, and plans to establish two liquefied gas transfer stations in the port to regulate imports. However, this plan needs at least two years to complete. In other words, Indonesian natural gas will face pressure from demand and prices in the near future.
British Sulfur Consulting analysts believe that the current demand for synthetic ammonia, industrial gas demand, and natural gas pricing have determined that it will be difficult for Indonesia to build new installations in the medium term. If we are to build a new nitrogen fertilizer plant, we must solve the problem of raw materials, that is, we must increase the supply of natural gas.
Earlier this year, Indonesia’s state-owned fertilizer company warned that production levels will be cut by two-thirds in 2012 due to lack of natural gas. At present, the company has a synthetic ammonia capacity of 1.5 million tons and urea of ​​2.26 million tons. In 2008, the production of synthetic ammonia and urea reached 1.3 million tons and 1.95 million tons respectively.
Indonesia’s state-owned fertilizer company currently has four state-owned fertilizer companies. The four companies produced a total of 2.87 million tons of synthetic ammonia and 4.26 million tons of urea in 2008.
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