Govt's plan to ban naphtha and condensate export questioned

Oil and gas regulatory body BPMIGAS questioned the government?s plan to restrict export of naptha and condensate, saying that the measure would result in excess of condensate supply in the domestic market.

?We are not sure how to use the condensate which cannot be absorbed by local refineries,? said BPMIGAS deputy for operation Rudi Rubiandini said.

He said that Indonesia still imports a special type of crude from Saudi Arabia because some of refineries could not use condensate from local production. Some of condensate produced is also mixed into certain type of crude to increase its value in export market.

According to BPMIGAS data, total condensate production is expected to reach 109,532 barrels per day. Next year, the condensate production is expected to increase to 115, 000 bpd.

When contacted to comment on the export restriction, director general of oil and gas Evita H. Legowo said that it was still being discussed.

The industry ministry has proposed to restrict naphtha and condensate export to ensure sufficient supply for the country?s chemical industry.

Tony Tanduk, the director for basic chemical industry said in Jakarta last week that the plan to restrict naphtha and condensate exports would soon be discussed with the Energy and Mineral Resources Ministry, Trade Ministry, and related industries.

Of the total naphtha demand which reaches 2.2 million to 2.3 million tons a year, 1.7 million to 1.8 million tons are imported. Indonesia also still imports 60 percent of its condensate demand which is estimated to reach 100,000 tons a day. The remaining 40 percent comes from Senipah, East Kalimantan. (godang)