Bontang resumes LPG production

East Kalimantan LNG producer PT Badak NGL, popularly known as Bontang LNG, is restarting LPG production after it halted in 2005 due to scarcity of gas supply.

?Starting today (Monday), the Bontang LNG is producing LPG. In line with (state owned oil and gas firm) PT Pertamina?s marketing schedule and the request of upstream oil, gas regulatory body BPMIGAS, the first shipment will be carried out in the third week of July 2009,? Badak NGL's President Director Agus Haryanto told Petromindo.Com on Monday.

The plant is expected to produce around 2,700 m3 of LPG per day, he said.

A senior official of Pertamina said earlier that the company would offtake all LPG production from Bontang to meet domestic demand.

In March, Agus Haryanto told Petromindo.Com that the plant would be able to produce 750,000 tons of LPG per year (Bernard)