Pertagas revitalizes Mundu LPG plant

PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm PT Pertamina, said it was ready to start the Mundu LPG plant revitalization project following recent approval from the parent company.

Pertagas said in a statement Thursday that the revitalization of the Mundu LPG plant in Indramayu, West Java Province, forms part of the company?s efforts to increase domestic LPG production to help reduce import and in anticipation of rising demand amid the current government push for households to switch to the cheaper fuel from kerosene.

?The proposed investment for the Mundu LPG plant has received approval from Pertamina, so Pertagas will soon begin the implementation of this project, to contribute to fulfilling domestic LPG demand,? said Pertagas President Director Hendra Jaya in the statement.

The project includes the revitalization of the Mundu LPG plant capacity, construction of a 20.8 km pipeline linking the onshore processing facility of Balongan crude refinery and the Mundu plant, and the modification of Pertamina EP existing gas pipeline route to the Mundu plant, the statement said.

Hendra is confident that once the project is completed, Pertagas will be able to support Pertamina?s efforts in reducing LPG import volume, which currently stands at an average rate of 27,000 metric tons (MT) per year.

This year, LPG import is estimated to reach 4.9 million MT, or about 60 percent of the national LPG consumption of 5.3 million MT.

Editing by Reiner Simanjuntak