【Haichuan Project Updates】Signing of equipment procurement and construction contracts for Tianchen’s 4 million-ton coal chemical project in Indonesia

Are these two projects the same project? ========================== Huisheng participates in an $3 billion coal chemical project in Indonesia. According to a report from April 4th, Huisheng Engineering (China) Co., Ltd. and Indonesian PT Lion Power Energy have recently completed the feasibility study for a coal chemical project located in the Muara Enim area of South Sumatra. Sidik Darmawan, the business development manager at Huisheng, revealed that the company is carrying out environmental impact assessment activities in an effort to obtain the AMDAL permit as soon as possible. “We expect to obtain the AMDAL as soon as possible, while closing the financing window in April. In the second half of 2016, we plan to carry out the preliminary design of the project. ”It is reported that the total investment amount for the project amounts to 3 billion US dollars. The designed capacity of the project is to process 4 million tons of coal per year, producing 300,000 tons of olefins and 600,000 tons of petroleum products. Indonesian oil company **Pertamina will act as the purchaser of the oil products.

On March 22, 2019, the member company China Tianchen and the Pakistani Anglo Group signed a letter of intent for cooperation on a coal chemical project in Karachi. China Tianchen and Anglo Company are long-term and important partners, collaborating in various fields such as chemicals, power plants, storage and transportation, as well as new energy. This project aims to utilize local coal resources in Pakistan to produce a range of downstream chemical products, in order to compensate for the shortage of oil and gas supplies. The signing of the letter of intent for this project has strengthened the cooperation between Tianchen Company and Anglo Company in Pakistan, laying a solid foundation for further expanding the market there.

On the evening of July 5, China Chemical announced that its wholly-owned subsidiary, China Tianchen Engineering Co., Ltd., has recently signed a general contract for the engineering work of an integrated gas and power project in Indonesia with PT HOKASA MANDIRI UTAMA of Indonesia. The announcement states that the owner of this project is the Indonesian company PT HOKASA MANDIRI UTAMA, which is located in Jakarta, Indonesia. The project’s business model is an Engineering, Procurement, and Construction (EPC) contract model, with a contract duration of 48 months. The total value of the contract is 1.45 billion US dollars, which is equivalent to 9.9905 billion yuan. This amount represents 12.27% of the company’s audited operating revenue for 2018. The signing of this contract is expected to have a positive impact on the company’s financial conditions and operational results in future accounting years.

The Bontang LNG project in Indonesia is located in the city of Bontang, East Kalimantan Province. The contract duration is 24 months, with a daily LNG delivery capacity of 680 MMSCFD. Indonesia is an archipelago**, making it impossible to build large-scale natural gas transmission networks; moreover, the population density varies greatly among the islands, with transmission sites scattered across different locations. Once completed, this project will use shipping to transport LNG-filled tank containers to the various islands, which will significantly alleviate the pressure associated with the supply of natural gas for household use and power generation in the islands of Indonesia’s northeast region. It will play a significant role in improving people’s living standards and promoting local economic development.