ESSA – Encouraging ammonia production

ESSA – Encouraging ammonia production Surya Esa Perkasa (ESSA) is optimistic to record ammonia production volume growth of 740,000 MT by the end of this year. Meanwhile, LPG production volume is estimated to reach 70,000-74,000 MT and condensate production is estimated to reach 150,000-155,000 barrels. Note that, the realization of ESSA production in 2022 is 566,030 MT ammonia, 62,256 MT LPG and 139,797 barrels of condensate. To achieve this production target, ESSA has provided gas supply from Pertamina EP for the next few years. On September 20, 2023, ESSA has signed an Amendment to the Gas Sale and Purchase Agreement (PJBG) with Pertamina EP. Through the agreement, ESSA's LPG refinery in Palembang will obtain gas supply of 70 mn MMSCF with a total contract quantity of 456.81 bn MMSCF. The offtake agreement is valid until December 31, 2027. ESSA is also preparing a blue ammonia plant which is targeted to start production in 2025. Currently, ESSA is conducting a feasibility study of a phase 2 project regarding the reservoir and structure. The feasibility study is expected to be completed in its entirety in 4Q24. According to the plan, ESSA will start construction in 3Q25 with a planned commissioning in 1H27. The first production of blue ammonia is targeted in the same year when the Japanese market is ready to absorb blue ammonia. (Source : Kontan)