PT Bukit Asam Tbk. PT Pertamina, and US's Air Products and Chemicals Inc. Build coal gasification project in Pranap, Riau - Photo by PTBA
JAKARTA (TheInsiderStories) — Two state-owned enterprises, PT Bukit Asam Tbk (IDX: PTBA) and PT Pertamina, along with Air Products and Chemicals Inc. from United States (US), signed a joint cooperation to build coal gasification project in Pranap, Riau. The agreement has inked today (01/16) in Jakarta.
On Nov. 7, 2018, the parties has signed Memorandum of Understanding in Allentown, United Stated. Furthermore the three companies will set up joint venture company (JVC) to make coal into dimethylether (DME).
Arviyan Arifin, the CEO of Bukit Asam explained, the plant is expected to have 1.4 million tons DME’ capacity production annually. To reach such production, the plant will need 9.2 tons coal a year, he said.
He explained, through gasification, the coal will be converted to syngas, and to be processed again into the end-product. Air Products and Chemical will be responsible for optimising the processing technology, Bukit Asam will supply the coal, and Pertamina will contain the processed coal.
“This downstream is strengthened with 8.3 billion tons coal resources and 3.3 billion tons coal reserve,” said Arifin by adding the DME as a substitute of LPG raw material, that’ Indonesia mostly imported.
CEO of Pertamina Nicke Widyawati, added so far Indonesia imports 73 percent of LPG raw material. So, the coal gasification is a very strategic project to national energy sovereignty, according to her.
Prior to the implementation, Bukit Asam, Pertamina, and Air Products and Chemicals will initially do joint-business and commercial feasibility studies in three months time. Its expected the groundbreaking of the project end of March, 2019.
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