E1, Pertamina to sign LPG deal

South Korea's E1 Corp and Pertamina will sign a contract to set up a 50-50 joint venture for LPG production, the South Korean firm said on Thursday as quoted by agency.

Under the contract to be signed on Friday, both companies will invest a combined $150 million to start commercial production of LPG from around 2010 for sale to South Korea and Indonesia, E1 said in a filing to the Korean Exchange.

The project, which is located in South Sumatra, will produce an annual maximum of 500,000 tons of liquefied petroleum gas (LPG) for 15 years. (*)