Japan's Mitsubishi Heavy Industries Ltd's is interested in building a coal gasification plant on Indonesia's Sumatra island, and could start construction by the end of 2012, an Indonesian official said on Wednesday.
"The output from the plant is expected to replace gas which is supplied by Conoco Phillips to Chevron operations in Sumatra," said Evita Legowo, director general of oil and gas at the energy and mineral resources ministry.
She told reporters she expects a deal with Mitsubishi will be reached this year, and the coal-to-gas plant could be operational within 2-3 years of construction starting.
The South Africa petrochemical group Sasol said on Tuesday it would not continue with a planned coal-to-liquids plant project in Indonesia as it was more focused on gas-to-liquid opportunities.
Chevron, the U.S. oil major is the biggest producer of crude oil in Indonesia.
Indonesia hopes to produce 970,000 barrels per day (bpd) of oil and condensate in 2011. Source: Reuters
"The output from the plant is expected to replace gas which is supplied by Conoco Phillips to Chevron operations in Sumatra," said Evita Legowo, director general of oil and gas at the energy and mineral resources ministry.
She told reporters she expects a deal with Mitsubishi will be reached this year, and the coal-to-gas plant could be operational within 2-3 years of construction starting.
The South Africa petrochemical group Sasol said on Tuesday it would not continue with a planned coal-to-liquids plant project in Indonesia as it was more focused on gas-to-liquid opportunities.
Chevron, the U.S. oil major is the biggest producer of crude oil in Indonesia.
Indonesia hopes to produce 970,000 barrels per day (bpd) of oil and condensate in 2011. Source: Reuters
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