Pusri, Japanese firms to jointly build coal gasification plant
Monday, July 16 2007 - 02:04 AM WIB
State owned fertilizer companies Pusri Holding and the research and development department of the ministry of energy and mineral resources will cooperate with two Japanese companies, Ishikawajima Harima Heavy Industries, Ltd (IHI) and Sojitz Corporation, to develop a coal gasification plant in Indonesia. Kontan reported Monday.
Bukin Daulay, the head of the research and development department, said in Jakarta Saturday that the plant would produce gas from coal that will be used as raw material for the production of fertilizer at plants owned by Pusri Holding.
Pusri Holding consists of PT Pupuk Sriwijaya and PT Pupuk Kujang.
The consortium would build a semi-commercial coal gasification plant near Kujang's industrial compound in West Java later this year. He said that IHI would provide about US$60 million to finance the construction of the project, which was expected to process about 50 tons of coal per day.
According to him, every ton of coal will be able to produce about 15 million standard cubic feet (MMSCFD) of gas, with a production cost of about $4 per MMBTU.
Feasibility study (FS) has been finished. Construction is expected to start at the end of this year and take eight months to be completed, he said.
Bukin said that the plant which was expected to begin production in 2008 would receive coal supply from state-owned coal mining company PT Tambang Batubara Bukit Asam (PTBA). (*)