IHI, Sojitz to produce gas in Indonesia using coal

Tokyo (Antara News) - Ishikawajima-Harima Heavy Industries Co Ltd will join forces with trading house Sojitz Corp to launch gas production in Indonesia, using less expensive, low-grade coal, the Nihon Keizai Shimbun reported, without citing sources.

The two will build refineries that can process brown coal to produce gas comparable in quality to natural gas, on the islands of Java and Sumatra, the business daily said.

The total investment is estimated to exceed 100 bln yen, it said.

As a first step, an experimental facility with capacity to process 30-50 tons of coal a day will be established in western Java to power a fertilizer plant and by 2011, a commercial plant capable of processing 1,000 tons of coal a day will be built, it said. One ton of coal can make 400-700 cubic meters of gas.

By 2013, the two firms will construct one of the world's largest brown coal gas plants in southern Sumatra that can process 10,000 tons of coal a day, the Nikkei said. (*)
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