Pertamina clears Samtan to enter S. Sumatra NGL project

PT Pertagas, a gas distribution unit of state oil and gas company PT Pertamina Tbk said that it has green light for South Korean firm Samtan Corp. to participate in South Sumatra natural gas liquefaction (NGL) project following completion of due diligence by Pertagas.

?Pertagas has sent letter to confirm approval for Samtan to replace E1 Corp. as 34 percent shareholder in the NGL venture,? Pertagas Acting President Harjana Kodiyat told Petromindo.Com on Monday.

Pertagas was initially teaming up with another South Korean firm E1 Corp. 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. (bernard)