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PT Kaltim Methanol Industri

- A regional benchmark of Methanol -

April, 2012

Vision :To become the leading methanol supplier in SouthEast Asia and East Asia

Mission :• To produce a high quality methanol at competitive price.

• To deliver the product as quickly as possible, even for a small volumerequired by customers, in a very adaptable and flexible manner.

• To become a sustainable and healthy company by applying internationalbusiness standards of quality, health, safety and environment.

• To develop our human resources and care for their well-being.

• To care for the development and well-being of local communities.

About UsAbout Us

The ShareholdersSojitz : 85 % PT. Humpuss : 10 %Daicel Chemical Singapore : 5 %Board of Commissioners1. President Commissioner : Ir. Wardijasa2. Vice President Commissioner : Kenichi Ariga3. Commissioner : Shunji Jimbo4. Commissioner : Arthur IrawanBoard Of DirectorsPresident Director : Norio YamazakiVice President Director : Masashi KajitaDirector (General Affairs) : Ir. Agus PriyatnoDirector (Production) : Ir. Suhardi RahmanDirector : Yoshiyuki NoguchiDirector : Shinichiro Aoki

About UsAbout Us

Our plant is located inside the KIE (Kaltim IndustrialEstate), Bontang, East Kalimantan, Indonesia. Rawmaterial is natural gas, supplied by ProductionSharing Contractors (PSC), namely Total Indonesie,VICO Indonesia and Chevron, from the Badak GasField Center.This very strategic location enables us to deliver ourproduct to any ports in South East Asia, quickly, in aflexible manner and at competitive price.

Production Capacity:Our plant started commercial operation in 1998with a design capacity of 2,000 metric tons ofgrade AA methanol per day, or 660,000 M/T perannum. The plant is operated by 214 highly skilledemployees

Plant Location:Plant Location:

Bontang

Jakarta

KMI

KIE Complex Map

KMI

Kaltim Fertilizer Plant 1/2/3/4 (Ammonia, Urea)Kaltim Daya Mandiri (Electicity)Kaltim Methanol Industri (Methanol)OCI Melamine (Melamine)Kaltim Pasifik Ammonia (Ammonia)Kaltim Parna Industri (Ammonia)Kaltim Nitrate Indonesia (Ammonium Nitrate) Coal Boiler (Steam)

Kaltim Fertilizer Plant 1/2/3/4 (Ammonia, Urea)Kaltim Daya Mandiri (Electicity)Kaltim Methanol Industri (Methanol)OCI Melamine (Melamine)Kaltim Pasifik Ammonia (Ammonia)Kaltim Parna Industri (Ammonia)Kaltim Nitrate Indonesia (Ammonium Nitrate) Coal Boiler (Steam)

KIE Complex size is estimated about 246 Ha.

Quality & HSEQuality & HSEIntegrated Management SystemSince August 2005, we have been implementingIntegrated Management System. We have beencertified by Lloyd’s Register Quality Assurance(LRQA) for ISO 9001:2008, ISO 14001:2004 andOHSAS 18001:2007 also SMK3 from Government ofRepublic of Indonesia

Health, Safety and Environment Presently KMI has achieved more than 6,250,000man hours (more than 10 years) without accidentand has been receiving “Zero Accident Award(s)”for 7 consecutive years since 2005. KMI alsoreceived certificate of appreciation for zeroaccident and certified with honors (gold flag) byIndonesian Government for SMK3 and for Properjudgment we get 2nd rank (green flag) from EastKalimantan Province Government. Since February24th, 2006, KMI became part of KNRCI community(member of National Committee of ResponsibleCare).

Specification of Our Product

Process TechnologyPT KMI use low-pressure-synthesis methanol with combined reforming processing technology licensed by Lurgi to produce methanol, which eventually contributes to our goal of producing methanol at competitive cost.

What is MethanolMethanol is petrochemical product, a liquid chemical at normal temperature,also known as Methyl Alcohol (CH3OH). Methanol is produced by steamreforming process and methanol synthesis. Crude methanol is purified into highgrade product through distillation

TECHNOLOGY

PRODUCTION PROCESS

Natural Gas Reforming Distillation Storage/ShipmentSynthesis

UTILITIES

Cooling WaterSteam Electricity

METHANOL UNIT

Oxygen

Methanol

Condensates

1. DesulphurizerThe function is to remove sulfur compounds in natural gas, because sulfur compounds willpoison all catalyst in reforming unit also in synthesis methanol. Desulphurizer unit utilizes CoMoand ZnO catalysts with reaction :RSH + H2 RH + H2S ZnO + H2S ZnS + H2O

2. PrereformerThis reactor will convert all heavy carbon (C2

+) in natural gas, so steam reformer can beoperated in lower steam to carbon ratio (~1.9 mole/mole). Nickel-based catalyst is utilized forprocess below :CnHm + nH2O nCO + (n+m/2) H2 CO + H2O CO2 + H2CO + 3H2 CH4 + H2O

3. Steam ReformerThe function is to convert methane to CO, CO2 and H2. Nickel-based catalyst is also utilizedfor process below :CH4 + H2O CO + 3H2 CO + H2O CO2 + H2

4. Autothermal ReformerRest of methane outlet Steam Reformer and a part of natural gas will be converted to CO,CO2 and H2 with steam reforming process and partial oxidation which is catalyzed by Nickel-based catalyst alsoCH4 + H2O CO + 3H2 CH4 + O2 CO + H2 + H2OCO + H2O CO2 + H2 CnHm + (n+m/2)O2 nCO2 + (m/2)H2O

Reforming Unit

Methanol Distillation UnitThis unit consists of three part:• Degassing • Low boiling removal • High boiling removal

Methanol Synthesis UnitThis unit converts syngas from Reforming Unit to raw methanol. Conversion processes occur along multi tube reactor catalyzed by Cu and Zn, with reaction below :

CO + 2H2 CH3OHCO2 + 3H2 CH3OH + H2O

(+ Methyl formiate, ethanol and higher alcohols)

PORT CONDITION and FACILITIESTo support the methanol loading activities, we have built our own jetty withmodern and sophisticated facilities and already accredited No:02-0014-DVbase on ISPS Code from Indonesian Government for methanol loading toshipJetty Capacity : 30,000 DWTLength of Port : 206 metersSea Draft : 10 metersLoading Arm Capacity : 2 arms @ 1,000 MT / hourSTORAGE TANKRAW METHANOL TANKCapacity : 1 @ 1000 Ton = 1000 Ton

INTERMEDIATE METHANOL TANK Capacity : 2 @ 1000 Ton = 2000 Ton

EXPORT TANK / PURE METHANOL TANKCapacity : 2 @ 30,000 Ton= 60,000 Ton

STORAGE TANK

Methanol Distribution Methanol Distribution METHANOL CARRIERSMETHANOL CARRIERS

OUR MARKET70% of our product, or approximately 480,000 MT/Y, isallocated for exports to Japan, Korea, Taiwan, China andother Southeast Asian countries, and the rest (30%), orapproximately 180,000 MT, is for the domestic market.Methanol sold is converted to formaldehyde, acetic acid,MTBE and other derivatives.In the Indonesian market, more than 60% of the demand isfor formaldehyde industries which produce adhesives forplywood and other wood processing industry.

Availability of methanol in Indonesia together with betterdelivery service will support production of downstreamchemical products using methanol as its raw material. KMI isconcerned to improve the service to satisfy consumers’needs, which finally will support development of industriesin Indonesia.

FormaldehydeFormaldehyde is one of the main applications of methanol, representing about 37% of total demand in the world.Formaldehyde becomes the main raw material for adhesive, like a UF (Urea Formaldehyde) adhesive, MUF(Melamine Formaldehyde) adhesive and PF (Phenol Formaldehyde) adhesive, each of which is used formanufacturing plywood, particle board and MDF.

Downstream ApplicationsDownstream ApplicationsKMI

Acetic AcidAcetic Acid which is about 10 % of total demand can be the raw material of various petrochemical products, ofwhich Purified Terephtalic Acid (PTA) is a major one. PTA is a basic component of Polyethylene Terephtalate (PET)resins which, for instance, become the plastic products like a bottle for beverages and household products. Otheruse of PET is a polyester fiber which is developed for textile, fabrics industries.MTBEMethyl Tertiary Butyl Ether (MTBE) is also another main application of methanol, approximately representing 14%of the total demand in the world. MTBE is blended to make high octane gasoline.Di-methyl Ether (DME)Primary applications of Di-methyl ether is as a propellant in aerosol canisters. Owingto its high cetane number, DME is also a promising substitute for diesel fuel and as anadditive to LPG for home daily use.Other UsageMethanol is used to manufacture other products like plastics, coatings, textiles, watertreatment chemicals, silicones, paper chemicals and so on. It is also used to producebiodiesel. In China, increasing volume of methanol is used as direct blending stock formotor gasoline.

KMI

CORPORATE SOCIAL RESPONSIBILITY PROGRAMME

1. Equator Monument Renovation2. Housing Renovation3. Reforestation4. Music training5. English Course for children who cannot enter public

Junior High School6. Circumcision and Blood Donation

Jakarta Head OfficeStandard Chartered Tower 20th FloorJl. Prof. Dr. Satrio No. 164Jakarta 12950Tel : +62 21-5794-6400 (hunting)Fax : +62 21-5794-6410

Bontang Plant OfficeKawasan IndustriPT Pupuk KaltimBontang, Kalimantan TimurTel : 0548-41394 (hunting)Fax : 0548-41136

PT Kaltim Methanol Industri

Thank You

WE DO THE BEST, BECOME THE BEST, YES WE CAN!

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