MedcoEnergi commences operation of LPG plant in S. Sumatra

Wednesday, December 15 2004 - 10:38 PM WIB

Publicly listed oil company PT Medco Energi Internasional Tbk announced Wednesday the inauguration of the US$20 million liquefied petroleum gas (LPG) plant in Kaji of Musi Banyuasin regency, South Sumatra Province.

MedcoEnergi said in a statement that the inauguration was performed by the Vice Governor of South Sumatra Mahyuddin and observed by Hilmi Panigoro, CEO of MedcoEnergi. Head of BP MIGAS, Rachmat Sudibyo and a representative from Musi Banyuasin Regency also attended the inauguration.

According to the statement, the LPG Kaji Plant is capable to process 20 million standard cubic feet per day (MMSCFD) of gas to produce 150 ton LPG per day or equivalent to 20 LPG trucks with the capacity of 7.5 ton.

The LPG plant uses previously flared gas from PT Medco E&P Indonesia (MEPI)-operated oil field located near the plant.

The statement also said that through 5 December 2004, the LPG plant had processed 3,100 MMSCFD flared gas resulted in 18,406 ton LPG, 70,830 barrel condensate, and 2,255 MMSCFD lean gas.

Production of LPG has been allocated to several industries with the total number of 100 ton per day to PT Pertamina (Persero), as buyer, to Palembang and Plaju.

Meanwhile, lean gas (residue gas) with the total of 8 MMSCFD distributed through pipeline to the 20-megawatt Talang Dukuh power plant, and condensate in the amount of 250 barrel per day distributed back to MEPI Kaji Station.

The LPG plant is operated by PT Musi Banyuasin Energi, a wholly owned subsidiary of MedcoEnergi. (Robert)

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