Pertagas, E1 to start S. Sumatra NGL plant construction in March

PT Pertagas, a gas distribution arm of state oil and gas company PT Pertamina and its partner South Korean firm E1 Corp will start natural gas liquid (NGL) plant construction in Prabumulih, South Sumatra in March, this year, a Pertagas official said on Wednesday.

Pertagas President Director Suharyanto said that engineering, procurement and construction (EPC) work for the project, which has estimated investment of US$192 million, would start this March by PT Tripatra Engineering.

The proposed plant, which is slated for completion in 2012, would process 250-300 MMCFD of Pertamina EP?s gas and 10-20 MMCFD of Medco?s gas to extract NGL from gas, Pertagas.

The plant will run a production capacity of 150 tons per day of excess propane, 2,150 BPD of condensate and 546 TPD of LPG.

Gas supply agreement for the project would be signed after the government appoints seller(s) for the gas, which is expected to be appointed by upstream oil, gas regulator BPMIGAS this month, he said.

Pertagas has 56 percent stake in the project with E1 having 34 percent and 10 percent S. Sumatra government.(godang)