Duta Firza partners with LG to construct petrochemical plant

PT Duta Firza plans to construct a petrochemical plant in Tangguh, Bintuni Bay, West Papua. The Indonesian firm will partner with South Korean multinational conglomerate LG International to construct the USD 3 billion plant. PT Duta Firza CEO Firlie Ganinduto stated that the two companies signed a Heads of Agreement (HoA) with LG International in Seoul, South Korea, on Wednesday (March 28). "PT Duta Firza and LG International will form a joint venture company to realize this project," Firlie stated in a press release received by KONTAN today.

The agreement was signed by Firlie Ganinduto of PT Duta Firza and Young Bong Ha, President and CEO of LG International. Indonesian President Susilo Bambang Yudhoyono, Industries Minister MS Hidayat, and Trade Minister Gita Wirjawan, who also serves as head of the Investment Coordinating Board (BKPM), were amongst those that attended the signing event.

The partnership agreed upon by the two companies encompasses pre-planning and pre-feasibility studies, up to the construction phase of the petrochemical plant. Preparations will be made regarding the security of gas supplies from the Tangguh field, project funding, and the availability of buyers for petrochemical products.

The groundbreaking ceremony for the plant is scheduled for mid-2014. Construction is expected to be completed in the fourth quarter of 2017 or the first quarter of 2018.

Notably, PT Duta Firza is an Indonesian private company operating in the oil and gas sector. The company was established over 30 years ago and focuses on Engineering, Procurement, Construction (EPC) contracting, infrastructure investment, and energy trading. Meanwhile, LG International is a conglomerate headquartered in Seoul, South Korea, with businesses in electronics, petrochemicals, mining, and services.