Pupuk Indonesia eyes USD 500 million Batam ammonia hub for production and bunkering
President Director Rahmad says Indonesia could draw lessons from Singapore's bunkering development and leverage its gas resources to build capabilities in lower-carbon marine fuels, including ammonia.
Pupuk Indonesia, the state-owned petrochemical company, is exploring an ammonia hub in Batam that would turn Indonesian natural gas into products for domestic industry and export, including ammonia as a future marine fuel.
The company is looking at gas supplies from the Natuna region and Grissik, as Indonesia’s gas supply contract with Singapore is set to expire in 2028. The project, valued at up to USD 500 million, would offer integrated infrastructure for ammonia production, bunkering, distribution, and trading, serving both domestic and international markets.
On 2 November, Pupuk Indonesia President Director Rahmad Pribadi and his team held initial discussions with BP Batam, the Batam Indonesia Free Zone Authority, led by its Head, Amsakar Achmad, at the authority’s offices in Batam, Riau Islands.
“President Prabowo Subianto has emphasized that natural resources are the lifeblood of our economy and must be used to strengthen it. Energy and Mineral Resources Minister Bahlil Lahadalia has similarly underscored the priority of meeting domestic needs in natural gas utilisation,” Rahmad said.
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