Jakarta Globe

Sasol Signs Deal to Explore $10b Coal-to-Liquid Project

The government and Sasol, the world’s largest synthetic fuel producer, on Thursday signed a preliminary agreement in London to study the viability of developing a coal-to-liquids facility project in Indonesia, with estimated project cost of over $10 billion.

The nation has become a net importer of oil due to rising domestic consumption and falling production, while there are an estimated 60 billion tons of coal reserves.

“The technology could help unlock Indonesia’s abundant coal reserves and would improve energy security by reducing dependence on imported fuels,” said Gita Wirjawan, the head of Indonesia’s Investment Coordinating Board (BKPM) ,who represented the government in the signing ceremony. “This is in line with Indonesia’s energy policy, which aims to diversify from oil to coal.”

If the project goes forward, Sasol said it may produce approximately 80,000 barrels a day of high-quality ultra-clean transportation fuel in Indonesia.

Your View

See Result