JAKARTA (Yosefardi) – Shareholders of PT Surya Esa Perkasa (ESSA) Tbk have approved the company’s plan for equity injection of up to US$80 million into subsidiary PT Panca Amara Utama (PAU).

PAU is now entering the final stages towards achieving financial closure of the US$750 million ammonia project.

“PAU has completed negotiations with gas suppliers for its gas sales agreement (GSA) and expects the GSA to be signed within Q2 2013,” ESSA said Monday.

PAU has commenced construction of its 700,000 tons per annum ammonia plant, which is expected to start commercial operation in third quarter of 2015. Related to the project financing, IFC is leading the US$500 million debt financing arrangement. Of the remaining US$250 million equity requirement, ESSA will be required to inject up to US$132 million.