LEHIGH VALLEY, Pa.,
May 14, 2020 /PRNewswire/ -- Air
Products (NYSE: APD) today announced it has signed a definitive
agreement for a long-term on-site contract for a world-scale
coal-to-methanol production facility in Bengalon, East Kalimantan, Indonesia.
Under the long-term on-site contract, PT. Bakrie Capital
Indonesia, part of the Bakrie Group, and PT. Ithaca Resources, part
of the PT. AP Investment, will supply the coal feedstock and have
committed to offtake the methanol production for sale within
Indonesia. Air Products will
invest about US$2 billion to build,
own and operate the air separation, gasification, syngas clean-up,
utilities and methanol production assets to produce methanol for
Bakrie and Ithaca. This facility—including Air Products'
proprietary Syngas SolutionsTM dry-feed
gasifier—will enable nearly two million tons per year (TPY) of
methanol to be produced from nearly six million TPY of coal. The
project is expected onstream in 2024.
Seifi Ghasemi, Air Products'
chairman, president and chief executive officer, said, "As
Southeast Asia's largest economy, Indonesia is committed to reduce its energy
imports and efficiently convert abundant coal resources into
high-value products. We are proud to have been awarded another
world-scale gasification project, where we will deploy our capital,
technology and operational expertise to help Indonesia meet these important goals. This is
another example of our long-term strategy to deploy capital into
high-return strategic industrial gas projects."
Dr. Samir Serhan, Air Products'
executive vice president, added, "Our core competency is our
ability to develop, execute, own and operate complex process
facilities that help our customers create engines of economic
growth and social development. We look forward to supporting Bakrie
and Ithaca in this game-changing megaproject that will provide
methanol for domestic consumption to support Indonesia's sustainable economic growth."
Adika Nuraga Bakrie, PT. Bakrie
Capital Indonesia's chief executive officer, together with Agoes
Projosasmito, PT. Ithaca Resources' president director, said,
"We're very proud to collaborate in this strategic project with Air
Products, the world leader in coal gasification. In line with
President Joko Widodo and the
Government of Indonesia's plan,
there is strong momentum for this project, which will produce high
value methanol from abundant, low-value coal reserves. Furthermore,
we are very encouraged by the Government's support for developing
cutting edge technology and products in the Eastern Region, which
will contribute to the overall sustainable economic development of
Indonesia."
Air Products continues its leadership in gasification projects
around the world. In addition to the new project in Indonesia, Air Products is executing a number
of gasification projects in China
as well as the Jazan project in Saudi Arabia.
About Air Products
Air Products (NYSE:APD) is a
world-leading industrial gases company in operation for nearly
80 years. Focused on serving energy, environment and emerging
markets, the Company provides essential industrial gases, related
equipment and applications expertise to customers in dozens of
industries, including refining, chemical, metals, electronics,
manufacturing, and food and beverage. Air Products is also the
global leader in the supply of liquefied natural gas process
technology and equipment. The Company develops, engineers, builds,
owns and operates some of the world's largest industrial gas
projects, including gasification projects that sustainably convert
abundant natural resources into syngas for the production of
high-value power, fuels and chemicals.
The Company had fiscal 2019 sales of $8.9
billion from operations in 50 countries and has a current
market capitalization of about $50
billion. More than 17,000 passionate, talented and committed
employees from diverse backgrounds are driven by Air Products'
higher purpose to create innovative solutions that benefit the
environment, enhance sustainability and address the challenges
facing customers, communities, and the world. For more information,
visit airproducts.com or follow us on LinkedIn, Twitter,
Facebook or Instagram.
About Bakrie Group and AP Investment
Bakrie Group is
one of the leading corporations in Indonesia. Its investment portfolio approach
is in mastering potential businesses, developing long-term business
synergies, and designing and implementing value creation
strategies. Its business activities have expanded to include
general trading, manufacturing, construction services,
agribusiness, mining (coal and mineral), oil & gas, and media
telecommunications. The Group also participates in strategic
infrastructure development efforts in the energy and transportation
sectors. This business diversification has opened up opportunities
for the Company to contribute to national development.
Bakrie Group through PT. Bumi Resources Tbk (IDX:BUMI) operates
two coal mining facilities, PT. Kaltim Prima Coal (KPC) and PT.
Arutmin Indonesia (Arutmin), and PT. AP Investment through PT.
Ithaca Resources also has several coal mining licenses, including
PT. Kaltim Nusantara Coal ("KNC"). The coal gasification that will
be built in this cooperation is designed to
convert coal to syngas for methanol production from coal
supplied from KPC and KNC.
NOTE: This release may contain forward-looking statements
within the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's reasonable expectations and assumptions as of
the date of this release regarding important risk factors. Actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors not anticipated by management,
including risk factors described in the company's Form 10K for its
fiscal year ended September 30,
2019.
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SOURCE Air Products