Indonesia to build $1.2b methanol plant – minister

Indonesia plans to construct a $1.2 billion methanol plant in Bojonegoro, East Java, to enhance national energy independence, according to Energy Minister Bahlil Lahadalia’s announcement.

The minister emphasised the critical role of the methanol plant in supporting the country’s mandatory biodiesel programme, as methanol is a key ingredient in the biodiesel production process. Indonesia’s annual methanol demand is estimated to be between two million and 2.3 million tons.

The Ministry of Energy and Mineral Resources has sought assistance from the Special Task Force for Upstream Oil and Gas to secure a stable 90 MMBtu (million British thermal units) gas supply for the methanol plant.

Attribution: Xinhua

Subediting: M. S. Salama