Petronas, Pertamina officials to hold LPG talks in Bali

Senior executives of Malaysia?s state oil company Petronas and the Indonesian state owned oil and gas firm Pertamina are scheduled to meet in Bali on June 28 to discuss the possibility of the former to supply Indonesia with liquefied petroleum gas (LPG), a Petronas senior official was quoted by Kompas daily as saying in Kuala Lumpur on Tuesday.

Petronas, with its LPG plant in Malaka, is ready to supply the commodity to Pertamina any time the Indonesian firm fails to fulfill the country?s domestic demand, Petronas? business development senior analyst Mohd Redzwan Mohammad Sofian said.

According to Redzwan, Petronas could ship its LPG to Indonesia to meet drastic increase in demand during Idhul Fitri, Christmas and New Year holidays.

Redzwan said however Pertamina had so far been able to supply enough LPG for the Indonesian market. He admitted Petronas and Pertamina had not signed any agreement to supply Indonesia with LPG.

Petronas?s managing director Anwar Ahmad has said earlier his company has interest to invest in the Indonesian oil and gas downstream industry to take advantage of the liberalization of the country?s oil and gas sector.

Indonesia late last year issued a new oil and gas law to allow the operation of foreign companies in its oil and gas downstream sector.

Petronas has been involved in Indonesia?s oil upstream sector among others in East Java, Makassar Straits and Natuna. (*)