Petrochemical Investment in Papua Hampered

TEMPO.CO, Jakarta - German petrochemical company Ferrostaal GmbH’s investment of US$8 billion in Teluk Bintuni Regency, West Papua, has been stalled by gas supply problem. Coordinating Economic Minister Chairul Tanjung (CT) said the government is still seeking solutions for the problem.

“I’ve already asked coordination under the Investment Coordinating Board (BKPM),” said Chairul on Tuesday.

Chairul said the company, who has obtained permission from the BKPM since 2012, needs a large supply of gas to produce 1.3 million tons of methanol per year. “They want to start the csontruction immediately,” he said.

Ferrostaal’s methanol factory needs supply of natural gas to be used as raw materials as much as 202 million standard cubic feet per day (MMSCFD). The company has targeted the construction to start next year and is currently waiting for supply of natural gas from Tangguh and Genting Oil field. Their production is intended to meet Indonesia’s huge need for methanol.

The current methanol supply has only reached 600,000 tons per year while Indonesia needs 800,000 tons, leading to importing 200,000 tons. Methanol is raw material from propylene and ethylene, the raw materials for making plastics.

JAYADI SUPRIADIN