At the end of this year, Bukit Asam (PTBA) began construction of a coal gasification project

JAKARTA, APBI-ICMA: PT Bukit Asam Tbk (PTBA) projects that the coal gasification project in Tanjung Enim, South Sumatra, will enter the construction phase this year.

"We hope that December 2018 will begin construction," said Arviyan Arifin, President Director of PT Bukit Asam Tbk

Bukit Asam has planned the project with PT Pertamina (Persero), PT Pupuk Indonesia (Persero) and PT Chandra Asri Petrochemical Tbk (TPIA) since the end of last year. The investment value of the project reaches US $ 1 billion to US $ 1.5 billion. While the construction takes around 2.5 years. Later, the gasification project requires a supply of 9 million tons of coal every year.

Coal gasification is the process of converting coal into synthetic gas (syngas). Syngas can be processed into dimethyl ether (DME) for fuel, urea for fertilizer, and polypropene for plastic raw materials. The gasification project is mandated by the Ministry of BUMN in developing coal downstreaming.