Tuesday, May 28, 2024

Air Products withdraws from their Indonesian projects following incentive offer from the US

Reading Time: 2 minutes
Gusty da Costa

Journalist

Annelis

Editor

Interview

Air Products and Chemical Inc. has decided not to pursue two downstream coal development projects in Indonesia. The company decided to withdraw from its coal gasification into DME collaboration with PT Bukit Asam Tbk (PTBA) and PT Pertamina. It also decided not to continue their engagement in developing methanol gas production facility in cooperation with Bakrie Group companies, PT Kaltim Prima Coal and PT Arutmin Indonesia.

“Air Products left because it feels more interesting to do business in the United States,” said Energy and Mineral Resources Minister Arifin Tasrif, explaining the company’s decision.

According to him, the company chose to invest in renewable energy projects in the US because the incentives offered by the US government were more attractive than the incentives they could get in Indonesia. “The US incentive is more interesting than other countries, such as the inflation reduction act. That’s why investors run there,” he added.

Even though the US company has left Indonesia’s coal gasification project, Tasrif said Indonesia would continue the coal gasification projects and other downstream industry development.

Commitment to PT Bakrie Capital Indonesia, PT Kaltim Prima Coal, and PT Arutmin Indonesia

Previously, the US company Air Products and Chemical Inc. was committed to develop methanol production facility in Bengalon, East Kalimantan. Company spokeswoman Jessica Cheng said Air Products would invest US$2 billion to build, own, and operate the air separation, gasification, syngas (synthetic natural gas) utilities, and methanol production assets.

In this project, Air Products was agreed to cooperate with PT Bakrie Capital Indonesia, a subsidiary of Bakrie Group, and PT Ithaca Resources, a subsidiary of PT AP Investment. Under a long-term on-site contract, both companies agreed to supply the coal feedstock and have committed to off-take the methanol production for sale within Indonesia,” she said in a statement to Indonesia Business Post on May 17, 2022.

This facility – including Air Products’ proprietary Syngas Solutions™ dry-feed gasifier – will enable the company to produce nearly two million tons of methanol per year (TPY) of almost six million TPY of coal. The project is expected on stream in 2024.

“As Southeast Asia’s largest economy, Indonesia is committed to reducing its energy imports and efficiently converting abundant coal resources into high-value products. We are proud to have been awarded another world-scale gasification project, where we will deploy our capital, technology, and operational expertise to help Indonesia meet these important goals,” stated Air Products Chief Executive Officer Seifi Ghasemi, to Indonesia Business Post on May 17, 2022.

Gusty da Costa

Journalist

Annelis

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

PT Barito Renewables Energy (BREN) has been included in the FTSE Global Equity Index, a large cap category, which will take effect on Monday, June 24, 2024
The Corruption Eradication Commission (KPK) has named a number of suspects in its investigation into the alleged corruption within the Directorate General of Railways (DJKA), the Ministry of Transportation.
Jakarta, May 27, 2024 − PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, has paid off the remaining bonds worth US$396,709,000 in accordance to the maturity date as part of the repayment of the overall bond value of US$1.35 billion issued in 2014 and listed on the Singapore Exchange.
JAKARTA – The International Labour Organization (ILO), along with three trade unions on garment, on Sunday, May 26, 2024, launched a grievance application for the Indonesian garment workers.
JAKARTA – President Joko “Jokowi” Widodo launched Government Technology (GovTech) digital application called ‘INA Digital’ in Jakarta on Monday, May 27, 2024.
Jakarta, May 27, 2024 − The Business Competition Supervisory Commission (KPPU) has found indications of violation of Law No. 5/1999 on prohibition of monopolistic practices by Lazada Indonesia (PT Ecart Webportal Indonesia).