Indonesia’s Bumi Resources and US Air Products launch $2 billion methanol joint venture in May

JAKARTA, April 27 (Reuters) – A unit of Indonesia’s biggest coal miner PT Bumi Resources (BUMI.JK) and U.S. company Air Products and Chemicals Inc (APD.N) will jointly invest in a methanol plant, it said. an Indonesian minister and a Bumi leader. said Wednesday.

Bumi’s Kaltim Prima Coal will build the facility in Bengalon, East Kalimantan, with an annual production capacity of 1.8 million tonnes of methanol, director Dileep Srivastava told Reuters.

He added that the joint venture will invest “about $2 billion all-in”.

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Indonesian Investment Minister Bahlil Lahadalia said the two companies aim to break ground in May, while Srivastava said the facility is expected to be commissioned by 2025 or 2026.

Air Products did not immediately respond to requests for comment.

In 2020, the company announced that it had signed a definitive agreement with Bumi’s parent company, Bakrie Group, and PT Ithaca Resources for a $2 billion “global methanol coal production facility”. .

Bumi said in 2020 that he planned to invest $1 billion in a coal gasification project, to comply with the Indonesian government’s ambition to process its natural resources domestically.

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Reporting by Stefanno Sulaiman and Fransiska Nangoy; Written by Gayatri Suroyo

Our standards: The Thomson Reuters Trust Principles.

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