Pertasamtan Gas to produce 140,000 tons of LPG this year

Pertasamtan Gas, a joint venture between state-owned oil and gas firm PT Pertamina Gas and Samtan Co Ltd, through its South Sumatra NGL refinery has started to supply liquefied petroleum gas (LPG) for domestic needs with production target of 140,000 tons this year.

The first production from the refinery facility was held on February 6. The facility is currently still in commissioning and operational acceptance stage with commercial operation expected to begin in April.

?Pertamina has set a production target of 140,000 tons this year for the South Sumatra NGL refinery,? said Ali Mundakir, Vice President of Communications at Pertamina, the parent of Pertamina Gas.

The US$193 million refinery facility, which is 66 percent owned by Pertamina Gas, has a production capacity of 710 tons of LPG per day, or equivalent to 4.5 percent of domestic LPG consumption. It also has the capacity to produce 2,024 barrels of condensate per day with the gas raw material coming from Pertamine EP in South Sumatra.

?Pertamina absorbs 100 percent of the production from the South Sumatra NGL refinery for a constract of minimum 10 years with a purchase price based on the Contract Price Aramco-Alpha,? Ali said.

Editing by Reiner Simanjuntak