Dynegy asked to quit S. Sumatra LPG project

State oil and gas company Pertamina said on Thursday that it would soon seek clarification from US energy trader Dynegy Inc. whether the latter will proceed with joint venture plan for with Pertamina to build liquefied petroleum gas (LPG) plant in Prabumulih, South Sumatra.

?Dynegy is facing financial difficulties. It seems that they are not interested to proceed with the joint venture plan. We?ll ask go or no go confirmation from Dynegy,? Pertamina President Baihaki Hakim said in a parliamentary hearing Thursday.

Baihaki said without Dynegy formally releasing its right for joint venture, Pertamina would not be able to proceed or to seek for new partner as it has first right of refusal privilege.

He further said the LPG plant development is of high importance to Pertamina and would like to see the project to go on.

Under the joint venture plan, Pertamina and Dynegy would spend some US$ 300 million to build LPG plant. Pertamina would supply natural gas at a rate of 300 million standard cubic feet per day from its South Sumatra operations and Dynegy would market the LPG for export. (alex)