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Jokowi kicks of coal gasification project in S. Sumatra
Air Products and Chemicals, partnering with Pertamina and Bukit Asam, started on Monday the construction of a US$2.3 billion project in South Sumatra that will produce around 1.4 million tons of dimethyl ether (DME) per year.
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President Joko "Jokowi" Widodo breaks ground on a pilot coal gasification plant in Muara Enim, South Sumatra, on Jan. 24, 2022. (Courtesy of BPMI Setpres)
P
resident Joko “Jokowi” Widodo launched on Monday the construction of Indonesia's maiden coal gasification plant that is part of the government's coal downstreaming plans.
American industrial gas company Air Products and Chemicals is partnering with state-owned oil and gas giant PT Pertamina and coal miner PT Bukit Asam to develop the US$2.3 billion project in the Tanjung Enim Industrial Park in South Sumatra.
The project, which turns coal into dimethyl ether (DME), is expected to take 30 months to complete. The DME will mainly be used to substitute liquified petroleum gas (LPG) as cooking fuel.
Jokowi said the project was part of the government’s efforts to phase out LPG imports, which accounted for 80.5 percent of last year’s consumption at around 7.95 million tons.
