Vale Indonesia (INCO) prepares to invest in Nickel plants.
PT Vale Indonesia Tbk (IDX: INCO), has planned to invest US$5 billion in nickel projects with its partners in the coming years. Inco plan to construct two battery-grade nickel plant projects one is located in Bahodopi, Sulawesi Tengah, and the other is located in Pomalaa, Sulawesi Tenggara. Inco setup a JV with Sumitomo Metal Mining Co. Ltd. for Pomalaa project and for the Bahadopi project, Chinese investor has expressed interest in partnering with INCO.
The Pomalaa project which will use a high pressure acid leaching process (HPAL) technology is expected to give INCO a 40.000 metric tons per year of battery grade/ Class 1 Nickel. This Pomalaa project investment cost is forecast at around $2.5 billion.
In addition to above, INCO is also plan to increase its Soroako nickel matte production capacity from 77.000 metric tons in 2018 to 90.000 metric tons per year in 2022.
Pertamina, Indonesian state owned oil & gas company signed a framework agreement for $1.5 billion loan with South Korean Eximbank. The fund is expected to support the modernization of existing refinery and construction of new refinery also known as Refinery Development Master Plan (RDMP) and Grass Root Refinery (GRR) projects. Pertamina hoped that the framework agreement will further facilitate cooperation involving other potential partners from South Korea, especially in the Balikpapan RDMP project.
Balikpapan RDMP project is designed to boost the capacity of the existing Balikpapan refinery from 260,000 barrels per day to 360,000 bpd. The project is located at Refinery Unit V – Balikpapan, East Kalimantan, Indonesia. The total cost of the project is estimated at $4.6 billion, with completion projected for 2023.
In early December last year, Pertamina has awarded the winner of the EPC bid for the Balikpapan RDMP project. The winner of the EPC bid is a consortium, consisting of SK Engineering & Construction Co. Ltd., Hyundai Engineering Co. Ltd., PT Rekayasa Industri and PT PP (Persero) Tbk.
A steel cutting ceremony marked the start of the project Merakes oil and gas field development project. The ceremony was held in Bintan at TechnipFMC subcontractor’s yard.
ENI, the operator of Marakes field, awarded TechnipFMC as the contractor for integrated Engineering, Procurement, Construction, Transportation and Installation for this project.
The Merakes project covers five deepwater wells, and their 50-kilometer tie back to the existing Jangkrik Floating Production Unit in Indonesia.
in addition to above the project also includes engineering, procurement, installation and pre-commissioning of subsea equipment such as subsea trees, a manifold, large bore deepwater high pressure flexible lines, umbilicals and distribution hardware, flexible risers, flowlines and jumpers.
The Merakes field, which is located in the East Sepinggan PSC in the Makassar Strait, offshore Balikpapan East Kalimantan, Indonesia, is estimated to hold about 2 trillion cubic feet of lean gas.
the water depth of the field is approximately 1,500 meters. The project contract value is between $500 million and $1 billion. First production from the field is expected in the second half of 2020.
Abadi LNG Project update, July 2019
Indonesia’s government approved the revised of Plan of Development (PoD) on The Abadi liquefied natural gas (LNG) project on the Masela block. In addition to the revised PoD, Indonesia’s government is also approved the application for a seven-year additional time allocation and a 20 years extension to the production sharing contract (PSC) for the Masela Block until 2055. The revised of PoD is due to the project’s development concept has been changed from a floating LNG scheme to an onshore LNG scheme.
The approval is a positive move forward for the project. The PoD approval will be followed by FEED project development towards final investment decision. Inpex, in cooperation with its partner Shell is set to begin the preparations to commence front-end engineering design (FEED) for the Abadi LNG development in Indonesia. Japanese firm Inpex owns 65% of the license, with the remaining 35% held by Shell.
The Abadi LNG is planned to have an annual LNG production capacity of 9.5 million tons per year (Mtpa). The project development is estimated will cost between $18 billion and $20 billion, with first gas expected in 2027.The Masela block is estimated to contain 10 trillion cubic feet (Tcf) of natural gas in place.