Pertamina to get 70,000 tons of LPG this week

State-owned oil company PT Pertamina is scheduled to receive about a liquefied petroleum gas (LPG) supply of 70,000-80,000 tons from the Bontang LNG plant in East Kalimantan on Sept. 13 this year.

Agus Haryanto, President Director of Badak NGL, the operator of the LNG plant, said on Monday the LPG shipment would be the second delivery by Badak this year.

Badak plans to supply Pertamina with a total of 240,000 tons of LPG this year. The first shipment of about 40,000 tons was carried out on July 26.

To meet the growing LPG demand on the domestic market, Pertamina signed a contract in August to buy 240,000 MT of LPG from the Bontang LNG plant. The state oil and gas company had also asked to buy an additional 160,000 metric tons that had been allocated by the Bontang plant for the export market.

Pertamina will need at least 3 million tons of LPG this year. About 1.6 million tons of the total will be used to supply the government?s kerosene to LPG conversion program and 1.4 million to for corporate buyers.

The Bontang LNG plant also exports part of its production. Of about nine cargos of LPG to be produced until the end of this year, two cargos have been allocated for overseas buyers. Each cargo weighs about 22,000 tons. (godang)