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RI hopes new gas discoveries could add 1.2m tonnes to local LPG production
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Undated photo of residents queue to buy 3-kilogram liquefied petroleum gas (LPG) canisters during a market operation in Surakarta, Central Java. (Antara/File)
T
he government is hoping to increase local liquefied petroleum gas (LPG) production, following a survey that found 12 oil and gas fields produced gas that could be processed into LPG.
The Energy and Mineral Resources Ministry said these fields could help the country reduce costly LPG imports, where large amounts are supplied from the United States and the Middle East.
"If we could work on it immediately, this could add 1.2 million tonnes [to our LPG production], on top of the current production of around 1.9 million tonnes," energy minister Arifin Tasrif said on Friday, as quoted by Bisnis.com.
According to the ministry, Indonesia consumes 8 million tonnes of LPG annually with 83 percent of the supply derived from imports.
Last year, Indonesia imported 6.78 million tonnes of LPG, a 5.6 percent hike compared with the previous year, with shipments mostly coming from the US, the United Arab Emirates, Qatar and Saudi Arabia.
Read also: New oil and gas bill to replace SKK Migas with dual function BUK Migas
Previously, the ministry tasked the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) to identify potential oil and gas fields in the country that could help local LPG production, which requires gas containing more than 4 percent propane and butane.
