Pupuk Indonesia explores Batam ammonia hub using Natuna and Grissik gas
BP Batam has offered licensing support for the proposed project, which would serve domestic and international ammonia markets.
PT Pupuk Indonesia (Persero) is exploring an ammonia hub in Batam to process natural gas domestically and develop downstream industries. The proposal envisages using gas from Natuna and Grissik, particularly if the gas contract between Indonesia and Singapore ends in 2028.
Pupuk Indonesia president director Rahmad Pribadi met BP Batam head Amsakar Achmad and other officials on 2 November at BP Batam’s office in the Riau Islands to discuss the proposal.
The planned hub would include infrastructure for ammonia production, storage, distribution and trading, serving both Indonesian and overseas markets. Pupuk Indonesia has ammonia production capacity of about 7.1 million tonnes annually.
Rahmad said the shipping industry’s shift towards lower-carbon fuels presented an opportunity for Indonesia to develop ammonia production and ship-refuelling services. He said the company was open to working with partners, with the aim of retaining more of the value from natural-resource processing within Indonesia.
BP Batam investment deputy Fary Djemy Francis expressed support for the initiative and said the authority would facilitate the permits needed. He said subsequent processes, including licensing, could be accelerated if an agreement was reached, and BP Batam would form a joint team with Pupuk Indonesia once the project was ready for investment.
