Dynegy formally quits S. Sumatra LPG plant project

State oil and gas company Pertamina said that US energy company Dynegy Inc. had formally quit South Sumatra LPG plant project and Pertamina is in the process of selecting new partner(s) for the project.

?Dynegy had formally quit the project. Pertamina , however, will proceed with the project. Currently two business groups from Japan and Korea had offered to replace Dynegy and one local consortium had also offered to participate in the project,? Pertamina president Baihaki Hakim told reporters on a sideline of Indonesian Petroleum Engineers Association congress in Jakarta Thursday.

Baihaki, however, declined to reveal the names of the potential investors.

Pertamina and Dynegy had originally planned to build the US$ 300 million LPG plant in South Sumatra with the capacity of 400,000 tons per year. The LPG substance would be extracted from natural gas produced by Pertamina in South Sumatra.

The plant was originally scheduled to commence production in 2004. ?With the delay, I think the plant will start to produce LPG in 2006,? said Baihaki. (alex)