Pertagas to sign GSA for S. Sumatra NGL project

PT Pertagas, a gas distribution subsidiary of state oil, gas company PT Pertamina is negotiating to finalize gas sales agreement (GSA) with sister company PT Pertamina EP and IDX-listed firm PT Medco Energi to supply gas to its proposed natural gas liquids plant in South Sumatra, a company official said on Monday.

Under the GSA, Pertagas would process 250-300 MMCFD of Pertamina EP?s gas and 10-20 MMCFD of Medco?s gas to extract NGL out of gas, Pertagas President Suharyanto told Petromindo.Com.

He said Pertagas wanted gas supply contract over the period of 10-12 years.

He said GSA would be signed ?soon?. Gas from Pertamina and Medco would be originated from their respective South Sumatra fields, he said.

Pertagas in partnership with South Korean firm E1 Corp and South Sumatra administrative-owned company plan to set up an NGL plant in the city of Prabumulih with estimated investment of US$192 million.

The proposed plant, which is expected to become onstream in 2012, will have capacity to process 250MMCFD of gas feed and will produce 150 tonnes per day of excess propane, 2,150BPD of condensate and 546 TPD of LPG.

Suharyanto said the LPG produced would be sold to parent company PT Pertamina to meet domestic requirement.

He said four contractors had been short-listed to carry out the project?s EPC. They are: PT Tripatra Engineering, PT Rekayasa Industri, PT Inti Karya Persada Teknik and South Korean firm STX Corp.

The winning contractor will be named in October or November this year, he said. (bernard)

Prabumulih NGL Extraction Plant
Raw gas : 250 mmscfd@1135 btu/scf
Sales gas : 230 mmscfd@1017 btu/scf
Gas processed : 50,000 mmbtu
NGL by pipeline 8"x 90 km to Sungai Gerong
NGL Fractionation Plant : Sungai Gerong
NGL Production:
* Excess propane : 150 tons/day
* Condensate : 2,157 bbl/day
* Mix LPG : 546 tons/day