Perta-Samtan Gas to boost LPG supply this year

PT Perta-Samtan Gas, which operates an LPG plant in Banyuasin, South Sumatra, is expected to jump to 204,000 metric tons this year from 123,800 tons last year.

?Our target for 2014 is to be able to supply 204,000 metric tons of LPG to domestic market,? said Budi Yana, Operational Director of Perta-Samtan Gas in a statement received on Monday. Budi last week visited the plant.

Perta-Samtan Gas is a joint venture between state-owned oil and gas firm PT Pertamina(66%) and South Korea?s Samtan Co (34%). The company operates and LPG plant with production capacity of 710 metric tons per day, or equal to about 4.5 percent of domestic LPG demand.

First went into production last year, the LPG plant has been expected to help the country reduce import while meeting growing domestic demand for LPG as the government moves to push households to convert into gas from the more expensive kerosene.

The LPG plant receives 250 mmscfd of gas supply from Pertamina EP Sumatra, the statement said.

Budi said that while the LPG plant last year only supplied demand in South Sumatra, its market has now expanded to other parts of the country such as Kalimantan, Lampung, and Jambi.

Editing by Reiner Simanjuntak