Arrtu Mega starts DME plant construction
Tuesday, May 25 2010 - 03:08 AM WIB
"The government welcomes the construction of the plant as DME is one subsitute for LPG which can be used by households and industries," Evita Legowo, director general of oil and gas at the ministry energy and mineral resources, said during the groundbreaking ceremony to mark the start of the project's development.
Once the plant starts production, Indonesia can reduce LPG imports which have been significantly rising as a result of the govenrment's kerosene-to-LPG conversion program, she said, adding Indonesia now imports 70 percent of its LPG needs.
The plant will first use imported methanol as raw material to produce DME. Subsequently, it will use low-rank coal as raw mateiral. Indonesia has vast reserves of low-rank coal which is not easy to market in coal market.
According to Christophorus Richard, the president director of PT Arrtu Mega Energi, the plant will start using low-rank coal as raw material in the fourth year of production.
He said that the plant is being built on some 10.6 hectares of land with an investment of US$ 144 million. The project is expected to be completed in 20.5 months
Arrtu has 90 percent stake in the project with the remaining 10 percent held by Pertamina who also acts as offtaker. (bernard)