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 31 March 2007

 
Pertamina imports LPG in bid to ease local shortfalls
Jakarta

State oil and gas company PT Pertamina will import 18,000 metric tons of liquefied petroleum gas (LPG) in April to overcome a lack of supplies in the domestic market, an official says.

Pertamina Deputy Head of Trading and Marketing Hanung Budya said Wednesday Pertamina was forced to import the LPG because the maintenance of one of its refineries in Balikpapan, East Kalimantan, was causing delays in distribution.

Pertamina has imported some 12,600 metric tons of LPG this month.

Last year, Pertamina imported around 5.5 million metric tons of LPG because it could only supply one million metric tons of an estimated annual demand of 6.5 million metric tons.

In connection with recent LPG shortages in some parts of the country, Hanung said Pertamina would add 10,000 metric tons to the storage capacity of its Indramayu refinery in West Java this August.

The existing storage capacity of 25,000 metric tons is only capable of holding a six-month supply of LPG. Average demand stands at around 3,500 metric tons a day.

"We need to increase the capacity to 50,000 metric tons in order to secure the supply for 14 days," he said.

The company is also planning to rent semi-refrigerator tankers -- which can convert gas into a pressurized form -- with a capacity of 8,000 metric tons each, to deliver LPG directly to areas on Java from its production sites.

Supply for Jakarta, he added, would be increased by 30 percent this month to 1,500 metric tons a day, from the previous 1,100 metric tons. Supplies for Bandung will be upped by 25 percent to 350 metric tons from 280 metric tons.

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