High Benefit, PTBA Seriously Develops Coal Gasification
BUMNINC.COM | PT Bukit Asam Tbk (PTBA) is serious about developing a coal downstream program through the construction of a coal gasification plant to dimethyl ether (DME), which is located in Tanjung Enim, South Sumatra.
“PTBA as a pioneer in coal downstream development continues to prove and carry out its commitment to maintaining national energy security. This commitment is reflected in the seriousness of the development of coal downstream with the plan to build a coal gasification plant into a DME located in Tanjung Enim, South Sumatra,” said PTBA Corporate Secretary Apollonius Andwie C. in a written statement in Jakarta, Wednesday (11/11/2020).
PTBA targets a gasification project development cooperation business agreement to be signed in November 2020 together with PT Pertamina (Persero) and Air Products and Chemicals, Inc from the US, as investors.
Preparation for the construction of the coal to DME project will begin in early 2021 and the factory is targeted to operate in the second quarter of 2024. This downstream project has also been approved by President Joko Widodo as part of a priority project as stipulated in Presidential Regulation No. 18/2020.
The government continues to encourage downstream and accelerate the increase in the added value of coal, one of which is through processing coal into DME to be used as a substitute for LPG whose import figures continue to swell every year.
Based on data from the Ministry of Energy and Mineral Resources (ESDM), LPG imports in 2020 have reached 77.63 percent of the total national need of 8.81 million tons.
Without efforts to downstream coal, the ratio of LPG import figures could increase to 83.55 percent of the total requirement of 11.98 million tons in 2024. According to Apollonius Andwie, in line with President Joko Widodo’s vision, this program of downstream utilization and increasing the added value of coal can provide benefits and positive impacts for Indonesia.
Several benefits and added value from the coal downstream project into a DME, including the development of a coal gasification project into a DME, will bring in investment of US $ 2.1 billion or equivalent to Rp32 trillion to Indonesia so that it can increase economic growth.
Then, the construction of the factory will utilize PTBA’s potentially unsaleable coal reserves of 180 million tons for 30 years and the coal gasification plant will process 6 million tons of coal per year to become 1.4 million tons of DME, which can reduce more LPG imports. of 1 million tonnes per year.
The reduction in LPG imports can save the country’s foreign exchange reserves of IDR 8.7 trillion per year or IDR 261 trillion for 30 years.
Besides, coal downstream also has sustainable effects for Indonesia, including direct benefits to the government amounting to Rp. 800 billion per year or Rp. 24 trillion for 30 years; trade balance savings of IDR 5.5 trillion per year or IDR 165 trillion for 30 years; and empowering the national industry by involving local workers and absorbing a total workforce of 10,570 people during the construction phase and 7,976 people during the operation period.
This industrial development study has been carried out comprehensively by involving international standard technical, financial, and legal consultants and also involving related ministries and institutions.
“These benefits are of course also a concrete step for the government together with state-owned enterprises (BUMN) to increase national energy security and reduce Indonesia’s dependence on imports of LPG,” concluded Apollonius. [] # Bumninc.com
