Minister: Berau Coal to participate in coal gasification project
Thursday, September 22 2016 - 02:30 AM WIB
Minister of Industry Airlangga Hartarto said that East Kalimantan coal miner PT Berau Coal has agreed to participate in the planned coal gasification project in the province.
?We already have a prototype at PT Pupuk Kujang (state-owned fertilizer firm in West Java). I want another coal gasification expansion (project) to be developed in East Kalimantan and Berau Coal has agreed to it,? he told Petromindo.com on Tuesday.
He said that the coal gasification project will convert the country?s abundant low rank coal into dimethyl ether gas that can be used as substitute of import such as in the production of LPG.
Japan?s IHI Corp set up a coal gasification pilot project at the compound of state-owned fertilizer firm PT Pupuk Kujang in West Java in 2013, and started successful production trial last year. During the production trial, the plan convert 50 tons of coal into 1,800 mmbtu of gas per day.
The coal gasification plant is expected to start commercial operation next year, Airlangga said on September 10, following a meeting with visiting top officials of the Japanese firm. The gas output will be used as raw material for domestic fertilizer and petrochemical industries.
During the meeting, Airlangga also asked the Japanese firm to further expand the coal gasification project to East Kalimantan, a key source of coal production in the country.
Editing by Reiner Simanjuntak