PTBA to supply coal for coal gasification project
Wednesday, February 17 2016 - 02:30 AM WIB
State-owned fertilizer company PT Pupuk Sriwidjaja Palembang (Pusri) and IDX-listed coal producer PT Bukit Asam Tbk (PTBA) are currently working together in the development of a coal gasification plant that would produce gas raw material for the fertilizer industry in South Sumatra.
Under the cooperation, PTBA will supply the required coal for 20 years.
Director General of Chemical, Textile and Miscellaneous Industries at the Ministry of Industry, Harjanto said that the construction of the coal gasification plant can save gas consumption by 25 percent.
He said that the coal gasification project is located near PTBA?s coal mine in Tanjung Enim, South Sumatra.
He explained that according to the feasibility study of the project, the coal gasification plant will utilize lignite coal with calorific value of around 4,200 kcal/kg. In addition, there will be three options of production plant including urea plant, ammonia plant, or a combination of ammonia and urea plant, according to Harjanto. No further details were provided.
Editing by Reiner Simanjuntak