Krakatau Engineering builds gas separation plant

PT Krakatau Engineering, a subsidiaty of state-owned steel maker PT Krakatau Steel, will build a gas separation plant with total investment of about US$80 million in cooperation with PT Samator Gas Industri and Bapelkes Krakatau Steel.

The memorandum of understanding for the construction of the gas separation plant was signed by executives of the three companies at the office of State Owned Enterprises Minister in Jakarta on Tuesday.

Krakatau Steel?s President Director, Fazwar Bujang, said that the gas separation plant, which would have a capacity of 356.4 million normal cubic meter per hour (NCMH) would provide oxygen supply for the steel company and its joint venture PT Krakatau Posco and other companies in Cilegon, Banten.

With such a capacity, the plant would be one of the largest gas separation plants in the country, he added.

Krakatau Posco will need oxygen supply of about 165,000 NCMH. German company Linde will provide about 100,000 NCMH while French company will provide 20,000 NCMH. The remaining 45,000 NCMH will be provided by the new gas separation plant.

Fazwar said that the three companies would form a joint venture to manage and operate the gas separation plant, which will be constructed this year. The plant is scheduled for commercial operation in 2014. (*)