Indonesia Methanol- Gasoline and LPG Substitution- Program

[Indos]

Pressing Imports, Pertamina to Develop Methanol Mixed Gasoline​

Story from Ahmad Fikri Noor • Yesterday 16.59


REPUBLIKA.CO.ID, JAKARTA -- PT Pertamina (Persero) will develop a mixture of gasoline with methanol. This follows previous successes with biodiesel products or a mixture of diesel fuel and vegetable oils. This is also Pertamina's effort to reduce carbon emissions.

Officers serve residents to fill fuel at one of the gas stations in the Senen area, Jakarta, Tuesday (3/1/2023). PT Pertamina (Persero) will develop a mixture of gasoline with methanol.© Republika/Son of M. Akbar

President Director of Pertamina Nicke Widyawati explained, with the challenge of natural decline from oil wells in Indonesia, it is currently forcing the state to import crude oil. However, Nicke said to cut these imports, she has prepared a number of plans.

Nicke said one strategy to cut gasoline imports is to mix it with methanol. Methanol can come from coal, natural gas, as well as sugarcane and corn. "Therefore, we will also start this gasoline program mixed with methanol. That methanol can be from coal, it can be from natural gas. Both of us have a lot. Likewise, sugarcane and corn," said Nicke at the 2023 National Energy, Climate, Sustainability Competition (NECSC), Sunday (12/2/2023).

Nicke said the methanol blend will start with a 20 percent portion. Thus, 20 percent of gasoline imports can be cut.

She said that the use of this methanol mixture is targeted at energy independence. Nicke also explained that in an effort to cut imports, Pertamina uses CPO as a mixture of diesel.

Furthermore, Indonesia has not imported diesel since 2019. Currently, the CPO mixture in diesel has reached 35 percent.

"Starting in 2019, Indonesia will no longer import diesel, because at that time in 2019, 30 percent of diesel needs had been replaced with CPO. We are now adding more (mixed) to 35 per cent," she said.

MSN

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[Indos]

Exclusive Videos​

Anindya Bakrie: Methanol Project Operations Start Q1-2024​

MARKET- CNBC Indonesia TV, CNBC Indonesia
29 May 2020 15:02

Jakarta, CNBC Indonesia- Bakrie Group built a consortium to build a USD 2 billion coal-to-methanol production facility in East Kalimantan. CEO & President Director of Bakrie and Brothers, Anindya Bakrie, said that the expansion of Bakrie Group is part of a new era that can provide added value to the coal industry.

Anindya said that the Bakrie Group methanol project will start the preparation stage within the next 3-6 months, then it will enter the construction stage until Q3-2023 and in Q1-2024 the production process will be able to be carried out. Then what is the development of the Bakrie Group methanol project? For more information, watch Aline Wiratmaja's dialogue with CEO & President Director of Bakrie and Brothers, Anindya Bakrie at Power Lunch, CNBC Indonesia (Friday, 29/05/2020)

Anindya Bakrie: Operasional Proyek Metanol Dimulai Q1-2024

akrie Group membangun konsorsium untuk membangun fasilitas produksi dari batu bara ke metanol senilai USD 2 miliar

www.cnbcindonesia.com

 

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More interview

 

[Indos]

Air Products & Chemicals Breaks Ground for $2.3b DME Plant in S. Sumatra​

BY :JAKARTA GLOBE
JANUARY 24, 2022

President Joko "Jokowi" Widodo speaks during a groundbreaking event of a $2.3 billion downstream coal project in the Tanjung Enim Industrial Estate, South Sumatra, on Monday, Jan 24, 2022. (Antara Photo/Nova Wahyudi)


Jakarta. President Joko "Jokowi" Widodo has presided over a groundbreaking event for a $2.3 billion downstream coal project in the Tanjung Enim Industrial Estate, South Sumatra, on Monday, kicking off the second-largest direct investment by an American company in Indonesia in the past year.

The country expected the project would help it cut its dependency on expensive fuel imports.
Air Products and Chemicals, the American multinational industrial gases and chemicals manufacturer, worked with state-controlled coal miner Bukit Asam and state-owned energy company Pertamina to build a plant that turns coal into dimethyl ether (DME). The government hoped the gas fuel that it could replace the liquified petroleum gas (LPG) in the kitchens across the country.

Minister of Investment and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the plant would require a total investment of Rp 33 trillion ($2.3 billion) and about 30 months for construction.

"This is quite a big investment. This is the second-largest investment from the United States after Freeport," Bahlil said during an event on Monday. He referred to Freeport Indonesia's $2.9 billion investment in a copper smelter in East Java, expected to start constructing this year. Freeport McMoran controls 48.8 percent in Freeport Indonesia, while the Indonesian government controls the remainder.

"This is fully direct investment from the United States. It is not from South Korea, Japan, or China. This also dispels the notion that we only focus on [attracting investment] from only one country," Bahlil said.

Bahlil said the coal-to-DME project would generate 12,000 to 13,000 direct jobs during its construction phase, carried out by Air Products and Chemicals. The project would also add 11,000 to 12,000 jobs in Pertamina's downstream facilities.

"For non-direct jobs, the project involves many contractors and subcontractors. It can have three to four times multiplying effect," Bahlil said.

"In addition, once there is production, there will be 3,000 permanent jobs in the coal to the DME project.

President Jokowi said he was elated by the plant groundbreaking, waiting for about six years for the downstream coal project to start finally.

Turning coal into DME, said the President, would reduce LPG imports and ease the burden on the state budget. In addition, it creates new jobs and improves the trade balance.

"Our imports of LPG are large, maybe Rp 80 trillion from our total demand of Rp 100 trillion [a year]. That must be subsidized for the public because the price is already very high. The subsidies are around Rp 60-70 trillion," Jokowi.

The Minister of State-Owned Enterprises Erick Thohir said the coal-to-DME project was a national strategic project. This status ensures the project would enjoy the government's various incentives such as tax breaks or expedited permit process.

Erick said Air Products and Chemicals invested $ 2.1 billion in the project. With the utilization of six million tons of coal per year, Erick said, this project can produce 1.4 million DME per year to reduce LPG imports by one million tons per year.

Indonesia is the world's largest coal exporter, shipping around 400 million tons abroad every year. The southeast Asian country sits on top of about 25 billion coal reserves, the 11th largest in the world, according to data compiled by Worldometer.

Air Products & Chemicals Breaks Ground for $2.3b DME Plant in S. Sumatra

Indonesia expected the project would help it cut its dependency on expensive fuel imports.

jakartaglobe.id

 

[Indos]

800,000 Ton Methanol Plant To Be Built in Bojonegoro​

Nugroho
February 09, 2023, 22:00 WIB

Suarabanyuurip.com - D Suko Nugroho

Pertamina JTB project, East Java


Bojonegoro - The central government will optimize downstream gas to accelerate economic growth. One of them is by building a methanol plant with a capacity of approximately 800,000 tons in Bojonegoro Regency, East Java.

The Minister of Energy and Mineral Resources, Arifin Tasrif, said that gas production in East Java in the future is quite large in line with the increasing capacity of the Jambaran - Tiung Biru (JTB) field in Bojonegoro Regency, and the MDA & MBH Gas Field in Madura.

Arifin said that the production capacity of the JTB Gas field operated by Pertamina EP Cepu was 192 million standard cubic feet per day (million standard cubik feet per day / MMSCFD). Meanwhile, the capacity of the MDA & MBH Gas field managed by HCML Husky-CNOOC Madura Limited is 120 MMSCFD.

"The total production from these two fields reached 312 MMSCFD," said Arifin when accompanying Vice President (Vice President) Ma'ruf Amin inaugurated the Jambaran Tiung Biru (JBT) National Strategic Project (PSN) and MDA & MBH Gas Field, at the Sheraton Hotel and Towers, Surabaya, East Java (East Java), Wednesday (8/2/2023).

It was explained that gas production from the two fields has been partially allocated to PLN, industries in Central and East Java, PGN to Jargas Lamongan, and PT Petrokimia Gresik (PKG).

"Part of this gas will be processed to build a methanol plant with a capacity of approximately 800,000 tons which will be located in Bojonegoro whose products in the form of methanol will be used to support the needs of the biofuel industry in Indonesia," explained Arifin.

The Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, previously explained that the construction of a methanol plant in Bojonegoro is one of the gas downstream programs, after Indonesia succeeded in working on nickel downstreaming. The down streaming of the gas sector has been discussed in a limited meeting with President Joko Widodo or Jokowi.

"The president directed us to expand the down streaming program, one of which is gas. Yesterday we flattened, mr. President has asked us to do a good job," he said.

According to Bahlil, the construction of a methanol plant in Bojonegoro is one of the steps to maximize the downstream program of the gas sector. In Bojonegoro Regency itself there is a JTB gas field which is currently in production.

"80% of Indonesia's methanol comes from imports. If the factory is built here, of course we can meet domestic needs, and it will provide a multiplier effect and grow the economy," he said.
Bahlil admitted that there are already United States (US) investors investing to build a methanol plant in Bojonegoro.

"There investors are already there from America. The investors are not from Asia, but from America," he said.

Secretary of the Investment and One-Stop Integrated Service (DPMPTSP) Office of Bojonegoro Regency, Faisol Ahmadi previously confirmed that a methanol plant would be built in Bojonegoro Regency.

Currently, it is still in the feasibility study (FS) stage carried out by the Investment Coordinating Board (BKPM).

"Various potentials are still being studied scientifically by BKPM. Starting from the potential certainty of the supply of raw materials, land, and so on," he said.

Faisol revealed, based on the information he received during a joint meeting with BKPM (Investment Coordinating Board), the construction of a methanol plant in Bojonegoro was on the coordinates of land intended for industrial estates.

"It is estimated to be around the east of the Gayam District junction," he said.
Meanwhile, the Perhutani Administration of KPH Bojonegoro, Irawan Darwanto Djati through the Head of the Law and Compliance Sub-Section, Sunyoto said, the location of the methanol plant builder on Perhutani land is uncertain.

Because, he continued, during the cross-sectoral joint discussion meeting, there were two alternative locations for the methanol plant construction plan in Bojonegoro. Namely in forest areas and outside the Perhutani land.

"However, in principle, Perhutani is ready to support this national strategic project," he said. (suko)

• jTB gas production
• Methanol plant
• Gas downstreaming
• Methanol

​

Pabrik Methanol Berkapasitas 800.000 Ton Akan Dibangun di Bojonegoro - SuaraBanyuurip.com

Pemerintah pusat akan mengoptimalkan hilirisasi gas untuk mempercepat pertumbuhan ekonomi.

www.suarabanyuurip.com

 

[Indos]

Indonesia aims to be global player in commodity downstreaming​

4th February 2023

Coordinating Minister for Economic Affairs Airlangga Hartarto at the 'Economic & Business Outlook 2023' webinar organized by Warta Ekonomi on Friday (February 3, 2023).

(ANTARA/HO-Coordinating Ministry for Economic Affairs/pri)

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has said that the government is determined to make Indonesia a key global player in the commodity-based downstream industry given its enormous natural resource potential.

The government is focusing commodity downstreaming on 3 groups, namely agro-based industries such as the oleochemical industry and mineral-based industries such as the mineral and metal smelter industry.

The others are oil and gas and coal-based industries such as the coal-to-methanol project.

"The government also continues to encourage the potential of natural resources," the minister said.

"An example is Indonesia has the world's largest reserves of nickel, and the President's direction to reduce exports of raw materials and down streaming products continues to be increased," Hartarto added in an official statement released here on Friday.

The government is also increasing the downstreaming of leading mineral and metal-based commodities such as bauxite, tin, and nickel.

Refining and processing bauxite into aluminum end-products is targeted to increase the national income from Rp21 trillion (US$1.3 billion to Rp62 trillion (US$4.1 billion)

The downstreaming of tin metal is also expected to produce rare earth metals, which are important components for various current technologies.

In the nickel sector, after the success of the initial downstream phase with the growth of pyrometallurgical smelters producing ferronickel and stainless steel, the government has started pushing for the second phase.

This is being done by making Indonesia a center for electric vehicle battery production.

"Downstream efforts continue to be encouraged to add added value to the industry," he said.

"The government also provides a number of things such as industrial infrastructure, creating a conducive industrial business environment, issuing fiscal incentives, and encouraging human resources to keep abreast of technological developments," he added.

Indonesia aims to be global player in commodity downstreaming - ANTARA News

Coordinating Minister for Economic Affairs Airlangga Hartarto has said that the government is determined to make Indonesia a key global player in the ...

en.antaranews.com

 

[Indos]

Indika Energy (INDY) CEO Reveals DME Project Plan​

Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan, Chairman of the OJK Board of Commissioners Wimboh Santoso, Chairman of the Indonesian Chamber of Commerce Arsyad Rasjid, CEO of PT Indika Energy Tbk. Azis Armand, along with a number of other stakholders visited the London Stock Exchange, Friday (29/10/2021). - Anindya Bakie's twitter.

Mutiara Nabila - Bisnis.com 15 November 2021 | 16:39 WIB



Bisnis.com, JAKARTA – Following up on the investment agreement for coal processing into Dimethyl Ether (DME) with Air Products Chemical Inc. in early November, PT Indika Energy Tbk. (INDY) prepared a number of strategies.

Indika Energy CEO Aziz Armand said that the DME project will cost the most from the facility sector, which is then reflected in the processing fee. The DME project is planned to be built near the mine of INDY's subsidiary as a coal supplier, namely PT Kideco Jaya Agung.

"Later the process will be at the Kideco mine. The biggest logistics costs are when we carry out mining activities. Then, it is taken from the mine to the facility. Of course, it will be most efficient if it is done at the Kideco mine in terms of logistic costs," he explained to Bisnis, Monday (15/11/2021).

Then after the result, the DME will be sent to the port and taken to the end user, or accommodated as a backup.

In the future, Aziz added, if you need other types of coal that are not available at Kideco, it will still be studied further by INDY.

"For the economic scale, if you need other coal, for example from other mines where in the East Kalimantan area. Where will the facility be built? This will be the subject of study so that which one counts the most," he added.

Meanwhile, currently Indika Energy is still coordinating with Air Products regarding the development of the DME project, which is expected to reduce natural gas imports.
"INDY continues to be in contact with Air Products, currently there is more coordination online to finalize technical, investment, and so on," added Azis.

Previously, the Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia had signed a Memorandum of Understanding with Air Products and Chemicals, Inc. (APCI) in Dubai.

The megaproject investment worth US$ 15 billion or equivalent to Rp210 trillion was carried out in the coal gasification industry and its derivatives, in the form of establishing gasification facilities for the conservation of low-value coal into high value-added chemical products such as methanol, Dimethyl Ether (DME), and other chemicals.

As a concrete step from the memorandum of understanding with the Ministry of Investment/BKPM, Air Products also directly signed a Memorandum of Understanding with SOEs and national companies, one of which is the coal project into Dimethyl Ether (DME) between PT Indika Energy Tbk. (INDY) and APCI.

CEO Indika Energy (INDY) Beberkan Rencana Proyek DME

PT Indika Energy Tbk. (INDY) dan Air Products Chemical Inc. terus mematangkan rencana proyek pengolahan batu bara menjadi Dimethyl Ether (DME).

market.bisnis.com