Bontang LNG to resume LPG production in June

East Kalimantan LNG producer PT.Badak NGL, popularly known as Bontang LNG, will resume its liquefied petroleum gas (LPG) production in June, this year to meet the growing demand from the domestic market and also, in order to cope with the decline in the LNG orders from its foreign buyers.

Badak NGL?s President Director Agus Haryanto said in Jakarta on Tuesday that the company?s LPG unit which has been idle for about four years was currently under preparation to resume production.

He said that the LPG unit which has an installed production capacity of 1.1 million tons a year would be able to produce about 600,000 tons a year.

From June to the end of December, this year, the actual production was expected to reach between 350,000 tons and 400,000 tons (equal to 4-5 cargoes), he added.

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.

State-owned oil and gas company Pertamina said it would be ready to buy all the LPG to be produced by the Bontang LNG plant to meet the surge in the LPG demand in the country. (*)