Bumi Resources units launch coal-to-gas project, energy ministry says
Units of Indonesia's largest coal miner, PT Bumi Resources, have launched construction of a plant intended to produce up to two-million tons of gas a year from coal, the Energy and Mineral Resources Ministry said.
The project will use up to 7.78-million tons of low-grade coal to produce the methane, the ministry said in a statement issued late on Monday.
“This project is part of our efforts to increase the added value of natural resources, strengthen domestic industry, reduce dependence on imports, and support national energy resilience and independence,” Deputy Energy Minister Yuliot Tanjung said at a groundbreaking ceremony for the project.
Yuliot said the output from the plant is expected to replace imported methanol used in the production of palm oil-based biodiesel. Indonesia imported 1.3-million tons of methanol in 2025.
The project is being developed by PT Bumi Etam Chemical, a joint venture between two Bumi Resources subsidiaries, PT Arutmin Indonesia and PT Kaltim Prima Coal.
Rio Supin, CE of Bumi Etam, said it is targeted to reach commissioning in 2029.