State-owned petrochemical company Pupuk Indonesia is exploring a $500 million ammonia hub in Batam in Indonesia, with plans to produce, store and distribute ammonia for domestic use, exports and future marine fuel supply.
The company is considering natural gas supplies from Natuna and Grissik for the proposed facility, according to a press release issued on Wednesday.
Rahmad Pribadi, President Director of Pupak Indonesia, said Batam could build on Singapore's experience as a major bunkering hub as shipping explores ammonia as a lower-emission marine fuel.
The project would include ammonia bunkering infrastructure, with Pupuk Indonesia looking to develop a new market for the fuel in the Asia-Pacific region.
The company held initial discussions with the Batam Indonesia Free Zone Authority on Monday.
The authority has offered support with licensing and land allocation once the project reaches the investment stage.
Pupuk Indonesia has an ammonia production capacity of about 7.1 million mt/year. No construction timeline has been announced.
