RI, Japan agree to cooperate in synthetic project

Indonesia and Japan are exploring the possibility to cooperate in the production of synthetic natural gas (SNG) from a coal with low calorie in Sumatra.

Oil and Gas Director General Evita H. Legowo held a meeting with representatives of state owned companies at her office on Thursday to discuss the cooperation plan. In the meeting, they agreed on the signing of a letter of intent with the Japanese government about the plan.

Under the letter of intent, both Indonesia and Japan would appoint a trustee to realize the cooperation plan. However, Evita said that the availability of coal and surging coal price might hamper the cooperation plan.

The signing of the letter of intent will be part of the existing cooperation agreement signed with the Japanese government under which both Japan and Indonesia have agreed to cooperate in the use of synthetic gas for fertilizer production. The cooperation is however feasible if the coal price is below US$40 per ton and gas price does not exceed $8 per mmbtu. (giok)