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Pertamina signs Indonesian gasification deal with Adaro, Indika

December 09, 2020

The Jakarta Post:

State-owned oil and gas giant Pertamina signed on Monday a strategic partnership with privately owned coal mining giants PT Adaro Energy and PT Indika Energy to develop coal gasification facilities in Indonesia.

Pertamina president director Nicke Widyawati, in a joint statement on Monday, said the companies aimed to convert low-rank coal – the dirtiest fossil fuel – into dimethyl ether (DME), which would replace imported liquefied petroleum gas (LPG) as the go-to cooking gas in Indonesia. 

“This aligns with Pertamina’s strategy going forward to optimize [domestic] natural resources as feedstock to produce energy so we can reduce imports and the trade deficit,” she said.

An Institute for Energy Economics and Financial Analysis (IEEFA) study published on Nov. 10 calculated that at current low LPG prices, Bukit Asam would face $377 million dollars in operational losses each year in selling DME at competitive prices with LPG.

[Norman Harsono]

More: Pertamina partners with Adaro, Indika for coal gasification facilities

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