Pertamina to build two new LPG storage facilities

State-owned oil and gas company PT Pertamina plans to build two onshore liquefied petroleum gas (LPG) storage facilities as it expands capacity to help ensure better supply and distribution of LPG in the country, Investor Daily reported on Wednesday.

The paper quoted company Senior Vice President for Non Fuel Marketing, Taryono as saying that the two new LPG storage facilities will be developed in Tanjung Sekong, Banten Province, and in East Java Province, with combined capacity of 160,000 tons. The investment requirement for the two projects is estimated at US$250 million.

Taryono said that Pertamina has acquired much of the land requirement for the 80,000-ton capacity LPG storage in Tanjung Sengkong, with construction expected to start soon in the hope that it could be completed in 2017.

He added that construction of the facility in East Java is projected to be completed in 2018.

Pertamina currently operates two floating LPG storage facilities, each with a capacity to store 44,000 tons of LPG, or equal to 16-day stock. (*)