The plant is designed to utilise 6 million tonnes of lowrank coal to produce 1.4 tonnes of dimethyl ether (DME) annually, which canreduce Indonesia's LPG import by 1 million tonnes per year, according to statecoal miner Bukit Asam which is building the plant in partnership with US firmAir Products and Chemicals, Inc.
The plant is in Muara Enim, South Sumatra, a mining hub ofstate coal miner Bukit Asam. Construction is slated to take 30 months and stateenergy company Pertamina is expected to use gas produced from the plant.
Last year, Indonesia consumed 7.95 million tonnes of LPG, ofwhich 6.4 million tonnes were imported, according to Government data.
Indonesia allocated 66.3 trillion rupiah (4.6 billion USD) inthe 2022 budget to subsidise some domestic LPG consumption.
The country's LPG imports are expected to decline by six timesin 2025 from current levels, as it seeks to ramp up coal gasification, which ison a government "priority" investment list offering incentives suchas tax breaks./.