Pertamina constructs a gas depot in Southeast Sulawesi

The Jakarta Post ,  Jakarta   |  Wed, 06/24/2009 9:35 AM  |  National

State oil and gas company PT Pertamina is constructing a liquefied petroleum gas (LPG) depot in Southeast Sulawesi's capital of Kendari as part of efforts to support a kerosene-to-LPG conversion program to be completed in 2010.

Addieb, the company's local spokesperson, said Tuesday the depot would be in the city's coastal area and would be a floating depot which would allow ships carrying gas tubes to dock at the depot.

“The construction is scheduled to be finished next year. It will be the backbone of LPG distribution to support the conversion program,” he said as quoted by Antara state news agency.

Pertamina said the demand of LPG in the province was currently between 22,500 to 23,000 gas tubes (12 kilogram tubes) howevert the company was conducting a survey to measure increasing demand during the conversion program.

The government began the conversion program in December 2006, with Pertamina playing a leading role in its implementation. The government hopes the program will reduce spending on fuel subsidies, which currently cost about Rp 40 trillion (US$3.86 billion) every year. (dre)
  
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