Govt to repeat tender of mini LPG plant in South Sumatra

By Godang Sitompul

The government will repeat the tender for the construction of a planned mini LPG (liquefied petroleum gas) plant in South Sumatra this year, according to a senior government official.

Umi Asngadah, Director of Downstream Management at the Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources, told Petromindo.com Wednesday that the tender has to be repeated because none of the 41 bidders participating in the earlier tender passed pre-qualification process.

The planned mini LPG plant will have a capacity of 17 tons per day, expected to start operation in 2014.

It is unclear, however, why the bidders had not passed the pre-qualification. Among of the bidders in the earlier tender include PT Amarta Karya, PT Nindya Karya, PT Waskita Karya, PT Brata Indonesia, PT Parma Daya Teknika and PT Tamako Raya Perdana.

State owned oil and gas company Pertamina will operate the mini LPG plant, while PT Medco E&P Indonesia would provide the gas supply of about 5.2 million standard cubic feet per day (mmscfd).

Editing by Reiner Simanjuntak