Sasol, Mitsubishi eyeing Indonesia coal-to-gas projects

South African energy and chemicals group Sasol is not entirely abandoning its plan to exploit Indonesia?s huge deposit of thermal coal.

The company is now pursuing plan to develop gas-to-liquid in Indonesia after it abandoned previous plan to develop coal-to-liquid plant, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Evita Legowo said on Wednesday.

Evita said the government and and Sasol are now in talks about the detail of the project including the location and the volume.

Evita also said that Japanese firm Mitsubishi Corp. is also eyeing to build a coal-to-liquid plant in South Sumatra to supply gas produced to Chevron Corp.?s steamflood facilities in Central Sumatra.

A Chevron Indonesia official confirmed Mitsubishi?s intention to sell gas to Chevron. ?Mitsubishi has come to us, but thus far, no decision has been made,? Chevron Indonesia?s senior official Yanto Sianipar told Petromindo.com.

Currently, gas requirement for Duri steamflood comes from ConocoPhillips gas fields in South Sumatra. ?If Mitsubishi can supply gas to Chevron, gas from ConocoPhillips can be diverted to Java or Batam, which are in severe shortage of gas,? Evita said.

Evita, however, did not say when the project is expected to become onstream. (godang/bernard)