• Written on 31.07.2014 - Industry
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INDONESIA: Ferrostaal’s Indonesian methanol plans hampered by shortages of natural gas

Shortages of natural gas feedstock are delaying Ferrostaal GmbH’s plans to invest $8-billion in construction of a methanol-based olefins plant in Teluk Bintuni, West Papua, Indonesia.

Ferrostaal last year signed a letter of intent with Indonesia’s Ministry of Industry on cooperation for the development of the project, which also provided for the allocation of natural gas from local reserves.

Indonesia’s Coordinating Economic Minister Chairul Tanjung, noting that the 1.3-million-t/y methanol plant will require as much as 202-million standard cubic ft/d of gas, said the government is working to find a solution.

In addition to the methanol, Ferrostaal said the project would include the production of about 400,000 t/y of polypropylene.

Source: Weekly "PetroChemical News", Durham, NC, USA; 28 July 2014
(Syed Rashid Ali, Karachi, Pakistan)


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