No Gas Supply; Germany-funded Petrochemical Project Stalled

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Chairul Tanjung said the construction of a petrochemical plant by German investor, Ferrostaal GmbH, is likely to be delayed. The US$8-billion project in West Papua's Bintuni district has not received gas supply. "We are looking for a solution," Chairul said in his office, yesterday.

Ferrostaal initially targeted for the construction to start next year, awaiting gas supply from the Tangguh and Genting Oil fields.

Chairul said the plant construction, which was approved by the Investment Coordinating Board (BKPM) in 2012, required 202 million metric cubic feet per day (MMSCFD) of gas supply to produce 1.3 million tons of methanol per year. With the output, the national industry will no longer have to import methanol—a substance used to make propylene and ethylene, which are the raw material for making plastic.

SKK Migas acting chief John Widjonarkosaid they would allocate gas from Tangguh's train 3 Based on Tangguh's plan of development (POD), there is the allocation of 200 MMSCFD of gas, which can be distributed to the petrochemical plant.

Widjonarko said the gas will be distributed once Ferrostaal can confirm the continuation of its project.  

JAYADI SUPRIADIN | AYU PRIMA