Pertamina delays LPG import

Alfian ,  The Jakarta Post ,  Jakarta   |  Fri, 05/01/2009 3:44 PM  |  Business

Pertamina will delay its plan to import more liquid petroleum gas (LPG) this year as the state company is planning to use LPG production from a reactivate refinery in Bontang, East Kalimantan.

"This year we are  focusing on absorbing LPG supplies from domestic production. We will delay our plan to open tender for second import until 2010," Pertamina's deputy director for trading and marketing Hanung Budya told reporters Friday.

Pertamina had previously planned to hold a beauty contest to seek a second LPG  importer by the end of this semester.

But, Hanung said this plan was delayed because Bontang refinery, operated by PT Badak NGL, would reactivate its LPG production this June after being halted since 2006.  

Hanung said Pertamina expected this year demand for LPG could be fulfilled from Bontang refinery.

LPG domestic demand increases significantly after the government launched a kerosene-to-LPG conversion program in 2006. Pertamina is appointed to carry out the program.

Pertamina has signed a 10-year LPG import contract with the Bermuda-based Petredec.

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