By Bernard Loebs
PT Kilang Pertamina Internasional (KPI), a refinery sub-holding of state oil, gas company PT Pertamina (Persero) is still in talks with PT Karya Mineral Jaya (KMJ) over the plant to set up a JV to develop a methanol plant in Bunyu, North Kalimantan.
KPI Corporate Secretary Ifki Sukarya told Petromindo.Com on Tuesday that both parties are still negotiating about share composition. He said that further evaluation will also be required to assess the feasibility and the commerciality of the project.
Sources said that KPI is negotiating to control majority shares at the JV.
Read also: KMJ discusses land acquisition for N. Kalimantan methanol project
KPI and KMJ have secured gas supply of 60 MMCFD for 20 years from Nunukan block offshore North Kalimantan, which is operated by Pertamina Hulu Energi (PHE).
According to Ifki, the current supply will be sufficient to produce 630,000 tons of methanol per year, way below initial plan to produce 1 million tons per annum. To produce 1 MTPA of methanol, the project will require a gas supply of 90 MMCFD. “We hope there will be additional supply from PHE’s exploration program at Nunukan block,” he said.
The project was initially expected to become onstream in 2023.
Editing by Alexander Ginting
