Pertagas appoints Tripatra EPC contractor for S. Sumatra NGL project

PT Pertagas, a gas distribution subsidiary of state oil and gas company PT Pertamina (Persero) said on Monday it had signed an EPC contract with engineering firm PT Tripatra Engineering on to build a natural gas liquid (NGL) plant in South Sumatra.

Pertagas President Director Suharyanto said the EPC contract was signed on May 7, 2010.

The project, which will cost US$192 million to develop, will extract NGL from some 300 MMCFD of gas to be supplied by Pertagas? sister company PT Pertamina EP and Medco EP. Gas Sales Agreement (GSA) for the project would be signed on Tuesday during the Indonesian Petroleum Association Convention, he said.

The plant is designed with a production capacity of 150 tons per day (BPD) of excess propane, 2,150 BPD of condensate and 546 TPD of LPG. The project is expected to be completed in 2012.

Pertagas has 56 percent stake in the project. South Korean firm E1 Corp. which has 34 percent stake in the project has announced its intention to pull out from the project. Suharyanto said E1 may sell its shares to another South Korean company Samtan Corp, which is currently conducting due diligence on the project. (bernard)