PetroChina set to supply Pertamina with LPG

Chinese firm PetroChina is ready to divert 25,000 ? 30,000 metric tons (mt) of liquefied petroleum gas (LPG) usually sold spot market to PT Pertamina in order to support the kerosene to LPG conversion program with the provision that Pertamina would purchase the fuel at a market price, Investor Daily reported.

PetroChina Indonesia?s vice administrative director Budi Setiadi said in Jakarta on Monday that some amount of the LPG produced by the company at Jabung field in Jambi had not yet been signed up for sale. ?Pertamina is free to take it,? he said.

Previously, Pertamina?s deputy director for marketing and commerce Hanung Budya said that Pertamina had asked BPMIGAS to allocate the LPG production of the country?s production sharing contractors to Pertamina in line with the government?s program to boost the use of LPG and reduce the use of kerosene. Under the program, the government has set the target of reducing the national use of kerosene by 988,280 kilolitres and boosting the use of LPG by 567,700 tons this year.

Head of BPMIGAS Kardaya Warnika has said the agency would ask production sharing contractors to prioritize Pertamina in selling their LPG to support the government?s program

The market price of LPG ranges from Rp 6,000 ? Rp 7,000 per kilogram. Pertamina only sells it at the market price to industrial consumers, while the selling price to households and small-scale industries is Rp 4,250 per kg. (*)