Surya Esa resumes full production
Wednesday, October 24 2012 - 07:40 AM WIB
IDX-listed PT Surya Esa Perkasa, Indonesia?s only listed LPG Refiner, announced it has resumed full production of LPG & condensate after its contracted supply was restored by PT Pertamina EP (PEP) following improvement works carried out on PEP?s natural gas wells during the second and third quarters of the year.
As of October, all improvement works have been completed and the company is operating at full production, Surya Esa said in a media statement.
Previous reports show that production capacity of LPG and condensate at Surya Esa?s refinery in Palembang, South Sumatra, stands currently at 36,300 tons and 75,000 barrels, respectively.
Keeping in line with the government?s mandate to increase natural gas prices, the company and PEP have also agreed to amend the existing gas price into a formula-based gas price (based on CP Aramco LPG Price). In addition, PEP shall also offtake all condensate from the Company through a handling fee structure.
Surya has announced plans that it will increase LPG production by 45 percent in the second half of 2014. It is now also building an ammonia plant in Luwuk, Central Sulawesi, with total investment of about $750 million. The ammonia plant is expected to begin commercial production in the third quarter of 2015.
Editing by Dadan Wijaksana