Surya Esa to expand LPG and condensate production
Tuesday, October 23 2012 - 01:34 AM WIB
At present, the production capacity of LPG and condensate at Surya Esa?s refinery in Palembang, South Sumatra is 36,300 tons and 75,000 barrels, respectively.
The company?s corporate secretary Kanishk Laroya said in Jakarta on Monday that Surya Esa, the country?s largest LPG producer in the country planned to begin the expansion project in July 2014.
Kanishk said that the LPG and condensation had reached 39,500 tons and 149,000 barrels, respectively since 2011, exceeding the designed capacity. ?That?s why we intend to increase the production capacity by about 45 percent,? he said, adding that all of the LPG production is sold to Pertamina.
According to him, the national demand for LPG is estimated to reach 4 million tons this year. Pertamina imports about 2 million tons to meet the demand.
Surya Esa is now building an ammonia plant in Luwuk, Central Sulawesi, with total investment of about $75 million. The ammonia plant is expected to begin commercial production in the third quarter of 2015.
Kanishk said that the company would receive gas supply of about 55 million standard cubic feet per day (mmscfd) from the Donggi-Senoro gas project which is operated by Pertamina, Medco and Mitsubishi Corp.
Meanwhile, in order to meet the surging gas need for the company?s refinery in Palembang, the company was exploring the possibility of obtaining LNG supply from Tangguh LNG plant in Papua.
In addition, the company would also negotiate to get gas supply from the government?s production sharing contractors (PSCs) in East Java.
At present, Surya Esa receives gas supply from a number of PSCs in South Sumatra for the company?s refinery in Palembang. (*)