PT Ospirasi to build LPG plant in South Sumatra

PT Ospirasi plans to build a liquefied petroleum gas (LPG) plant in Ogan Ilir regency, South Sumatra, with total investment of about US$8 million, Bisnis Indonesia reported on Monday.

Muhammad Rizal, the chairman of the local chapter of the Indonesian Chamber of Commerce and Industry (Kadin), said the construction of the new LPG plant which would have a processing capacity of between 120 tons and 150 tons per day, would be commenced next month.

He said that the capacity of the LPG plan would be big enough to cope with the shortage of the LPG supply in the province. “The LPG from the new plant will be sold to Pertamina. But if the LPG price is getting more stable, Ospirasi will have the chance to sell the LPG directly to the market under its own name,” he said.

Meanwhile, Pertamina’s spokesman M. Harun said that it would import four cargos of LPG in November to cope with the decline in the country’s LPG production.

According to him, the LPG production from the Dumai and Balikpapan refinery plants has not met their maximum capacities following an overhaul work recently.(*)