Bontang LNG to restart LPG production

East Kalimantan LNG producer PT.Badak NGL, popularly known as Bontang LNG will restart producing liquefied petroleum gas (LPG) this year as its customers cancelled several LNG cargoes, a senior official with upstream oil, gas authority BPMIGAS said on Friday.

Deputy Chairman in charge of Marketing Djoko Harsono told Petromindo.Com on Friday that some 5-6 cargoes of LNG which will be cancelled by costumers this year will be converted into LPG.

Djoko said LPG production from Bontang will be prioritized to meet soaring domestic demand. He said Bontang might produce 1 million tonnes of LPG from gas feed equivalent to 5-6 cargoes of LNG.

Bontang has ceased LPG production since 2005 to meet LNG supply commitment from East Asian buyers amid gas supply shortage from East Kalimantan gas producers.

Pertamina on Monday was reported to have expressed interest to buy LPG from Bontang.

Separately, Bontang LNG President Agus Haryanto told Petromindo.Com on Friday that the plant would be able to produce 750,000 tons of LPG per year.(godang)