Panca Amara Utama (PAU) has awarded a contract to Japan-based Toyo Engineering to build a 2,000 tpd ammonia plant in  in Luwuk, Central Sulawesi, Indonesia, the companies said on Thursday.

PAU is a subsidiary of Surya Esa Perkasa (SEP), one of Indonesia’s top liquefied petroleum gas (LPG) producing companies.
 
The contract was awarded to Toyo on a turnkey basis, covering engineering, procurement, construction (EPC) and commissioning services.

The ammonia process will be based on technology from US-based KBR.

Toyo will carry out the project together with PT Inti Karya Persada Tehnik (IKPT), an Indonesian engineering firm part of the Toyo group.

The plant is scheduled to be completed in the third quarter of 2015.

The project plans to produce ammonia as a feedstock for downstream chemicals such as fertilizer, acrylonitrile, caprolactam and ammonium nitrate using natural gas produced from the Senoro and Toili natural gas fields in Central Sulawesi.

The aim of the project is to realize effective utilization of domestically-produced gas with enhanced value-add, according to the companies.