SASOL short-lists coal firms as partner to run coal-to-liquid plant

South African coal liquefaction firm SASOL has short-listed three potential partners for its proposed coal liquefaction plant in Indonesia, a government official said on Thursday.

The three candidates are state coal mining firm PT Tambang Batubara Bukit Asam Tbk (PTBA), PT Pendopo Energi Batubara (PEB) and PT Bhakti Energi Persada (BEP), Bukin Daulay, Head of Research and Development Centre for Mineral and Coal Technology at the Ministry of Energy and Mineral Resources told Petromindo.Com.

PTBA controls a huge coal concession in South Sumatra. PEB, which is controlled by coal mining giant PT Bumi Resources, has billions of tonnes of low-rank coal resources in South Sumatra. BEP, which is controlled by businessmen Teddy Rachmat and Benny Subianto, has a huge resources of low rank coal in East Kalimantan.

SASOL announced in December 2009 that it has signed an MoU with the government of Indonesia to study viability of setting up Coal-to-Liquid facility to produce approximately 80, 000 barrels per day of high quality ultra-clean transportation fuels, from Indonesia's abundant domestic lignite coal reserves.

Bukin said SASOL is also approaching state oil and gas company PT Pertamina (Persero) about possibility of the latter to offtake SASOL?s future production from Indonesia. (godang/bernard)