Pertagas scrutinizing S. Sumatra NGL plant partner candidate

South Korean firm E1 Corp. has formally informed PT Pertagas that another South Korean firm Samtan Corp. will take over its 34 percent stake at a natural gas liquid (NGL) plant in South Sumatra, a Pertagas official said on Thursday.

?Pertagas is currently conducting due diligence on Samtan, which will be completed this month,? Pertagas President Suharyanto said on Thursday.

Pertagas, a wholly-owned gas distribution unit of state oil and gas company PT Pertamina (Persero) is initially teaming up with E1 to build an NGL plant in South Sumatra. But E1 has decided to pull out of the project after the new management ruled that the project would not meet the hurdles it set and offered its stake to Samtan. Pertagas has 56 percent stake in the project.

The project, which will cost US$192 million to develop will to extract NGL from some 300 MMCFD of gas to be supplied by Pertagas? sister company PT Pertamina EP and Medco EP.

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.

Local engineering firm PT Tripatra Engineering has been appointed EPC contractor for the project. ?Pertagas has sent letter to Tripatra on June 7, 2010 to immediately commence construction works,? he said. (bernard)