Latham & Watkins has advised U.S. industrial gases provider Air Products on its agreement to build $2 billion methanol production facility in East Kalimantan along with Bakrie Capital Indonesia and Ithaca Resources, who were represented by Mishcon de Reya.
The plant, said to be the first of its kind in Southeast Asia, will be used for air separation, gasification, syngas clean-up and utilities. Bakrie Capital Indonesia and Ithaca Resources will supply the coal feedstock and offtake the methanol production, which will be sold by Air Products within Indonesia.
This facility, which is expected to go online in 2024, will enable nearly two million tons per year (TPY) of methanol to be produced from nearly six million TPY of coal.
The Latham team was led by partner Clarinda Tjia-Dharmadi, while Tahirah Ara led the Mishcon team.
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