Government phasing out monopoly in LPG distribution
Monday, April 30 2007 - 02:18 AM WIB
The government would gradually end the exclusive right of state oil and gas firm PT Pertamina in distribution of liquefied petroleum gas (LPG) to support the kerosene-to-gas conversion program, Sindo Daily reported.
“We would open it for the private sector gradually,"said Energy and Mineral Resource Minister Purnomo Yusgiantoro in Jakarta recently.
The government seeking to boost the use of LPG in order to reduce the consumption of heavily-subsidized kerosene.
Before, the ministry's director of downstream business development Erie Soedarmo disclosed that four distributors voiced their interests in distributing LPG under the conversion program.
The companies -- PT Odira Energy Persada, PT Kali Kuning Persada, PT Blue Gas Indonesia and PT Bhakti Mingas Utama -- are reportedly capable of supplying 400,000 tons per annum. (*)