JAKARTA (TheInsiderStories) - State-owned miner, PT Bukit Asam Tbk (IDX: PTBA), stated that the construction of a downstream coal plant into dymethyl ether (DME) could save import costs up to Rp8.7 trillion (US$591.84 million), said the spokesman on Wednesday (10/23). It said, the presence of the new factory is an alternative fuel can help reduce liquid petroleum gas imports.
According Apollonius Andwie C, the downstream plant located in in Tanjung Enim, South Sumatra, will absorb 6 million tons (MT) of coal per year and process it into 1.4 MT of DME. The construction of the factory is planned to start in mid-2021 and start the operation in 2025. The plant is part of the National Strategic Program as stipulated in Presidential Regulation Number 18 of 2020.
To run the projects, the issuer had signed a head of agreement state-run energy firm, PT Pertamina, fertilizer producer PT Pupuk Indonesia, and petrochemical producer PT Chandra Asri Petrochemical Tbk (IDX: CAPC) at the end of 2018. The gasification processing plant which is planned to start operating in November 2022 need an investment of Rp3 trillion.
The factory built in the Bukit Asam Coal Based Industrial Estate, which is located at the mouth of the Tanjung Enim coal mine. The areas will be in the same location as the Sumsel 8 Mines Mouth Power Plant. Its production is expected to meet the market demand of 500,000 tons of urea per year, 400,000 tons of DME per year and 450,000 tons of polypropylene per year.
In 2019, Bukit Asam, Pertamina and American-based’ Air Product and Chemicals launched the coal downstream plant into DME in Peranap mine. The company explained, this DME will be used by state-owned energy producer’ Pertamina as liquefied petroleum gas substitution to reduce imports.
According to the CEO, Arviyan Arifin, the selecting mining area in Peranap as the location of coal gasification because it has large reserves of low calorie coal. With the existence of this coal gasification project, it will certainly revive and optimize the role of Peranap coal for national energy security and community welfare.
He explained, through the 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 optimizing the processing technology, Bukit Asam will supply the coal, and Pertamina will contain the processed coal.
Earlier, Septian Hario Seto, deputy at the coordinating ministry for maritime and investment affairs, said that the coal gasification project could save foreign exchange at least Rp14 trillion. The potential comes from two coal gasification projects to become DME owned by PTBA and another project in East Kutai, East Kalimantan.
US$1: Rp14,700
Written by Editorial Staff, Email: theinsiderstories@gmail.com
