Surya Esa to boost LPG production

By Giok Manna

Gas processing company PT Surya Esa Perkasa will spend US$15 million to increase the production capacity of its large gas processing facility in Pelembang from 50 MT to 113 MT per day.

"At present front-end engineering design work is taking place and is scheduled for completion by 2014,? said Executive Director Vinod Laroya.

Eka Surya which was established in 2006 produces among others LPG propane, LPG butane, propane and condensate.

Vinod said the increased capacity would not need gas supply as it will use a more advanced and efficient technology, which the company plans to bring in from the U.S. or Canada.

A portion of the required funding will come from the proceeds of initial public offering (IPO) scheduled to take place at the end of January. The firm will sell up to 25% stake to the public with the hope of raking in Rp 150 billion in additional capital.

As reported earlier, the company also plans to build a US$700 million ammonia plant designed to have a production capacity of 700,000 tons of ammonia a year.

Editing By Dadan Wijaksana