May 18, 2020
Air Products, a global leading provider of industrial gases, announced that 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 main commercial contract for the transaction, 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 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 Solutions 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.
Latham & Watkins advised Air Products in the transaction with a deal team led by Singapore finance partner Clarinda Tjia-Dharmadi, and including Singapore counsel Owain Davies and Tim Fourteau, Tokyo counsel Richard Kim, Singapore associate Meredith Strike, and Singapore trainee Amaryllis Bernitsa.