Indonesia’s private oil and gas company PT Duta Firza has signed a heads of agreement (HoA), to team up with LG International to set up a petrochemical complex near the Tangguh gas field in West Papua, as per Jakarta Post. The total investment in this plant is estimated to be US$3 bln.
“The cooperation will cover pre-planning, pre-feasibility studies and the construction of the complex,” said Duta Firza chief executive officer Firlie Ganinduto after the signing as reported in a press statement sent to The Jakarta Post. The pre-planning phase included securing gas supply from the Tangguh field, seeking financing for the project, looking for buyers for the petrochemical products and appointing contractors for the engineering, procurement and construction (EPC) project. The pre-planning and pre-feasibility study phases are expected to be completed in Q3-2012. The follow up of those early phases will be conducted in Q1-2013, while the ground-breaking will take place in mid 2014.