Consortium to construct gas plant in East Java

Consortium to construct gas plant in East Java

JAKARTA (JP): A joint venture between Samator of Indonesia and U.S. Air Products and Chemicals Inc. plans to build a plant to produce oxygen, nitrogen and argon.

Arief Harsono, the president of Samator group, said in Surabaya on Thursday that the plant was expected to start commercial production later this year.

The plant in Gresik, East Java, would cost Rp 110 billion (US$46.6 million) to build, he said.

The joint venture, PT Samator Indo Air Products, is equally owned by PT Samator and PT United Air Products Indonesia (UAPI), a subsidiary of U.S. Air Products and Chemicals Inc.

The joint venture is expected to produce 810 tons of oxygen, nitrogen and argon a day: 330 tons will be in liquid form and 480 tons as gas.

He said that domestic demand for oxygen, nitrogen and argon was 300 tons a year, and was expected to increase 20 percent a year.

Samator group, which operates nine gas plants throughout the country, sells around 200 tons of oxygen, nitrogen and argon a year.

UAPI president director Bruce Gibson said his company was founded in 1990 as a joint venture equally owned by Air Products and Chemicals Inc. and Indonesian automotive maker Astra group.

Astra group has since sold its shares in UAPI to Air Products.

Air Products operates in 30 countries and books sales of around $4 billion a year. (jsk)