By Lambok Dominikus
PT Kilang Pertamina Internasional (KPI), the refining and petrochemical sub-holding of state-owned oil and gas firm PT Pertamina, said that feasibility study for a proposed methanol plant in Bunyu, North Kalimantan Province, is expected to be concluded in September of this year.
KPI plans to develop the methanol plant in a joint venture with PT Karya Mineral Jaya (KMJ), a subsidiary of PT MitraSukses Usaha.
“Regarding the cooperation between KPI and KMJ, we are currently waiting for the results of the feasibility study for the re-utilization of the Bunyu refinery which is expected to be completed in September 2022," said KPI Director of Planning and Business Development, Johan N.B. to Petromindo.com on Monday.
Read also : KPI, KMJ still in talks over N. Kalimantan methanol JV
Johan did not say whether there will be additional gas supply from the Nunukan block, operated by PT Pertamina Hulu Energi (PHE), considering that producing 1 MTPA of methanol requires 90 MMCFD of gas supply. Currently, KPI and KMJ have only secured gas supply of 60 MMCFD for 20 years from the Nunukan block, offshore North Kalimantan.
KPI Corporate Secretary Ifki Sukarya said in February that the 60 MMCFD gas supply volume will only be sufficient to produce 630,000 tons of methanol per year, way below the initial plan to produce 1 million tons per annum. To produce 1 MTPA of methanol, the project will require a gas supply of 90 MMCFD. “We hope there will be additional supply from PHE’s exploration program at Nunukan block,” he said at the time.
The methanol plant project was initially targeted to start production in 2023.
Editing by Reiner Simanjuntak
