Itochu, Pertamina to conduct FS on LPG market: Report
Friday, June 22 2007 - 02:49 AM WIB
Japanese trading house Itochu Corp. said Friday it will sign later in the day an agreement with state-owned oil and gas firm PT Pertamina to jointly conduct a feasibility study on the marketing of liquefied petroleum gas (LPG) in Indonesia.
The two companies aim to start selling LPG in Indonesia in 2010, said an Itochu spokesman as quoted by Japanese news agency Nikkei.
In April 2007, Pertamina signed MoU with Itochu to buy 1-1.5 million tons of LPG per year from Uni Arab Emirates and Qatar starting end of 2009.
Pertamina Trading and Marketing Director Ahmad Faisal told reporters on April 27, that Itochu acts as marketing agent for Qatar and UAE.
Itochu and Pertamina are considering building Indonesia's first LPG import terminal in western Java, said a person close to the deal.
The terminal, estimated to cost $3 billion, will be equipped with a refrigeration tank that can store between 160,000 tons and 200,000 tons of LPG, along with a port and a facility to pump the fuel into tanker trucks, said the person. (*)