DH Energy develops coal gasification in S. Sumatra

By Hiski Darmayana

PT DH Energy, through its subsidiary coal mining firm PT Pendopo Energi Batubara (PEB), is developing a goal gasification project in Prabumulih, South Sumatra.

The project will process 10 million tons of coal per year, producing synthetic gas of about 100,000 Nm3. ?The entire coal requirement will be supplied by Pendopo. Meanwhile, the synthetic gas would be allocated for petrochemical industries such as Pupuk Sriwijaya and also PLN (state utility),? Executive Director at the company Bambang Triharyono told Petromindo.com Monday.

Bambang added that the project is currently at the feasibility study stage, and is targeted to begin commercial operation in 2016. He said that to accelerate the development of the project, the government needs to provide incentives such as tax holiday and import tax exemption. ?Aside from that the government should also provide necessary infrastructure facilities such as roads, pipeline, and port,? he said.

Editing by Reiner Simanjuntak