Maspion builds LPG terminal in Gresik

Local firm Maspion Group is building a liquefied petroleum gas (LPG) terminal in Gresik, East Java to take the advantage of the growing LPG demand in the province, Bisnis Indonesia reporter on Thursday.

The US$26.7 million LPG receiving facility is being built by the business group?s subsidiary PT Maspion Energy Mitratama (MEM) in cooperation with state-owned oil, gas company Pertamina.

MEM?s director Seto Yusuf Widia said in Gresik on Wednesday that the LPG terminal which occupies a 5.6-hectare plot in northern part of Gresik was expected to begin operation in May next year.

?The contraction of the LPG terminal has been 57 percent completed,? he added.

He said that the terminal which would be equipped with a special pier to enable it to receive a LPG supply from a LPG tanker would have four LPG receiving units, each with a capacity of 2,500 tons.

According to him, the LPG terminal would be operated by Pertamina under a leasing contract, which will last for 10 years and extendible for another 10 years. He hoped that the project could reach a break event point in eight years.

In East Java, Pertamina has LPG terminal with capacity 8,000 tons in Tanjung Perak port, Surabaya. (*)