Indonesia's PTBA, Pusri Plan Coal Gasification Plant

Indonesia’s PT Bukit Asam (PTBA) and state-owned fertilizer company PT Pupuk Sriwijaya Palembang (Pusri) will build a coal gasification plant to take advantage of the company’s huge reserves of low-grade coal.

PTBA’s president director Milwarma said in Jakarta on Friday that the feasibility study for planned coal gasification plant was currently underway, Jakarta Post reported.

Gas produced from the plant would be supplied to Pusri for fertilizer production, Milwarma said.

The newspaper earlier reported that US-based company Celanese inked a $2 billion (Rp 19 trillion) deal with PT Pertamina to develop a similar coal gasification project in Indonesia. Milawarma said he was open to the possibility of participating in the Celanese-Pertamina’s project, Jakarta Post said.

“There is a possibility that we would go there [participate with Celanese], but we are focusing on completing our own gasification project. If we could do that, then it would be easy to turn it into many other products,” he said.