Indonesian coal gasification project may use Chinese technology

Industry Newsletters17hrs agoupdate PrintEnterprise

0 0

The Minister of Energy and Mineral Resources has announced that the coal-to-dimethyl ether (DME) project will start in 2026, aiming to reduce liquefied petroleum gas (LPG) imports.At present, the annual consumption of LPG in Indonesia is 8.5 million tons, the domestic production is only 1.3 million tons, and the annual import volume reaches 6.5-7 million tons.

DMEIt is a colorless gas thatReplacement of LPG and diesel, used in the aerosol propellant and chemical industries. The project is inAlready proposed under former President JokoBut because of the huge investmentPreviously only memorandums of understanding were signed. Technology options come from China or Europe and will ultimately be decided based on efficiency.

State-owned PT Bukit Asam (PTBA) will lead the project. Previously stalled due to the withdrawal of U.S.-based Air Products & Chemical, PTBA is now approaching Chinese partners. The project will utilize low-calorie coal resources, at a much lower cost than LPG, to achieve an import substitution strategy through coal gasification technology.

# Industry News