Pertagas to Allocate USD 15 Million for LPG Revitalization

BANDUNG, July 23 (EngineeringDaily) -- Indonesian oil and natural gas leader PT Pertamina Gas (Pertagas) is planning a massive revitalization of the processing of Liquefied Petroleum Gas (LPG) in its Mundu refinery in Indramayu, West Java Province.

The objective is to increase the production capacity of the refinery in order to reduce imports of LPG each year. Director of Pertagas Hendra Jaya said this decision was based on the Final Investment Decision (FID) of Pertagas.

Meanwhile, Secretary of Pertagas Wianda Pusponegoro revealed that funds of up to USD 15 million had been prepared for the revitalization activities. These funds will be used to increase the production of the LPG plant from 40 tons per day to 80 tons per day or about 27000-29200 tons of LPG per year.

Another revitalization agenda in Mundu is to build a 20.8 kilometer gas pipe line from the on-shore processing facility in Balongan to the Mundu refinery. “Now we’re in the process of the tender phase for engineering, procurement, and construction (EPC). The goal is to be completed in the second quarter of 2015,” Pusponegoro said.

Pusponegoro explained further that this project would support the Pertagas agenda to reduce imports of LPG by an average of 27,000 metric tons (MT) per year. This year, imports of LPG are expected to reach 4.9 million MT, or about 60% of the national LPG consumption of 5.3 million MT.

Revitalization projects in Mundu are only the first part of the long term agenda to reduce the imports of LPG. Several other refineries scheduled for revitalization are Brandan Base, Dumai, Plaju, Cilacap, Balikpapan, and Balongan.

By Ismail Al Anshori