Germany's Ferrostaal to build methanol, DME plant in Indonesia

20 April 2011 09:20  [Source: ICIS news]

SINGAPORE (ICIS)--German engineering firm Ferrostaal plans to build a methanol and dimethyl ether (DME) facility at West Papua in Indonesia, a company spokesperson said late on Tuesday.

“We confirm that we are interested in producing methanol and dimethyl ether in West Papua,” spokesman Hubert Kogel told ICIS in an emailed statement.

“Nevertheless, this depends on the allotment of a requested gas allocation which needs to be approved by the relevant Indonesian authorities”, Kogel said in response to queries regarding a recent Jakarta Post report.

The article said the firm will be investing about $900m (€630m) to build a plant in Papua which will produce around 1m tonnes/year of methanol and 200,000 tonnes/year of DME.

Ferrostaal is planning to acquire gas for the new plant from BP’s liquefied natural gas (LNG) plant at Tangguh in Bintuni Bay, the Jakarta Post quoted Ferrostaal’s petrochemical division senior executive manager, Soenke Gloede as saying.

Construction of the plant is expected to begin in 2013 with operations to start in 2016, Gloede told the Jakarta Post.

Methanol from the new facility will be sold both domestically and overseas, while the DME will be sold on the domestic market, he added.

Methanol is used to make formaldehyde, methyl tertiary butyl ether (MTBE), methylamines, methyl methacrylate (MMA) and acetic acid. It is also increasingly being used in DME as an alternative to diesel fuel and for direct blending into gasoline.

Regional methanol producers include Indonesia’s Kaltim, Malaysia’s Petronas and Brunei Methanol Co.

($1 = €0.70)

For more on methanol and DME, please visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database

By: Nurluqman Suratman

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