Indonesia's PT Bumi Etam Chemical Commences Construction of 1.3 Million Ton Coal-to-Methanol Project

en.Wedoany.com Reported - On August 31, a groundbreaking ceremony was held for the coal gasification-to-methanol project in East Kutai, East Kalimantan Province, a national strategic project of Indonesia, marking the project's entry into the construction phase. Located in the Batuta Chemical Industrial Park in the Bengalon area, the project is developed by PT Bumi Etam Chemical (BEC) and is planned to produce approximately 1.3 million tons of methanol annually.

The project plans to process approximately 7.7 to 7.78 million tons of low-calorific-value coal per year, with feedstock calorific values ranging from 3,300 to 3,400 kcal/kg. Products will be manufactured in accordance with the International Methanol Producers and Consumers Association (IMPCA) Grade standard. Production facilities include coal gasification units and methanol synthesis reaction facilities, supported by auxiliary power plants, water treatment facilities, and port terminals, with plans to integrate a carbon capture and storage system.

BEC is jointly established by PT Arutmin Indonesia and PT Kaltim Prima Coal. The project investment amounts to approximately IDR 41.52 trillion. On July 29, BEC advanced the Front-End Engineering Design (FEED) with PT Istana Karang Laut and China National Chemical Engineering Co., Ltd., and formed a framework agreement for Engineering, Procurement, Construction, and Commissioning (EPCC).

According to the current plan, the project will proceed with equipment procurement and construction following the completion of engineering design, targeting commissioning by 2029. The methanol produced upon completion is planned to supply industrial sectors such as petrochemicals and formaldehyde, as well as to meet production demands related to FAME.