Mitsubishi mulls leasing Pertamina's LPG terminal in Batam

Mitsubishi Corporation has expressed interest to lease a liquefied petroleum gas (LPG) terminal in Batam which belongs to state oil and gas Pertamina, a Pertamina executive told Petromindo.com on Friday.

Wiharto, Pertamina manager for LPG and special products, said Mitsubishi plans to store up in the Batam terminal LPG from the Middle East before selling it to buyers from Indonesia and other Asia and Pacific countries.

Earlier reports said Mitsubishi had initially considered to build LPG storages in South Sumatra and Banten.

Mitsubishi is Japan?s largest buyer of liquefied natural gas (LNG).

Wiharto added other foreign companies had also planned to build LPG terminals in Indonesia. They include Itochu Corporation, Petronas and Royal Dutch/Shell Group.

Existing oil and gas law, which came into effect late last year, allows foreign and local investors to enter the downstream sector of Indonesia?s oil and gas industry. Pertamina had held decades long monopoly over the sector. (godang)