Ferrostaal eyeing DME, methanol plant in W. Papua

German giant Ferrostaal AG is planning to develop a gas-based dimethyl ether (BME) and ethanol plant in West Papua.

The plant would have capacity of 1 million tonnes of methanol and 150,000-200,000 tonnes of DME per annum, with investment of around US$900 million, Senior Executive Manager Petrochemical Industry Soenke Gloede was quoted by media as saying on Friday.

Soenke said gas supply source is vital for the project. He expected gas for the plant would be supplied from BP-operated Tangguh gas project. The project could start production as early as 2016, he was quoted as saying.

The report did not disclose whether or not the company has held talks with BP over gas supply. (*)