JAKARTA (rambuenergy.com) – PT Adaro Energy Tbk (IDX:ADRO] is currently in talks with its partner Shenhua Overseas Development and Investment Co., Ltd of China, to develop coal-to-gas and coal-to-liquid project, as part of move to improve value added of its coal assets.
President Director and CEO of Adaro Energy Garibaldi Thohir told rambuenergy.com on Monday (Feb. 22) on sideline of press conference, held by the Indonesian Chamber of Commerce and Industry (Kadin) that the project is also part of the company’s commitment to develop downstream projects of coal.
“We are currently in intense talks with Shenhua to develop coal-to-gas and coal-t0-liquid projects,” he said.
A senior official at the Industry Minisry said recently that a number of investors are seeking permit to develop coal to synthetic gas, however the official did not disclose the name of the invstors.
At present, there is no such coal-to-gas and coal-to-liquid projects in Indonesia. Given the country’s huge coal reserves, coupled with lower coal price at present, such projects could be viable to be developed in Indonesia.
China and US have been quite advanced in developing coal-to-gas business.
Last September, Sinopec, whose flagship listed entity is Sinopec Corp, said it would push ahead with plans to build a coal-to-gas plant in Xinjiang with a capacity of 8 bcm a year – the country’s largest.
Coal-to-gas technology, similar to that used in South Africa to make oil from coal, uses vast volumes of water and produces a large amount of carbon dioxide.
Last year, the Chinese government approved a pipeline to transport synethic gas from coal-to-gas projects in the country’s far west to the southern coast, as stated by energy giant Sinopec..
The pipeline, which would run 8,400 kilometers (5,200 miles) from the restive region of Xinjiang to the manufacturing hub of Guangdong province, carrying up to 30 billion cubic meters (bcm) gas a year, has a price tag of over 130 billion yuan ($20.5 billion).
China, the world’s largest energy consumer, has made largely untested coal-to-gas technology a key part of its strategy to boost the use of cleaner fuels as it battles pollution in its big cities. (*)