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Government Kaji Bontang LNG to LPG Conversion

Jakarta (ANTARA) - The government is studying the conversion of excess of 20 cargoes of liquefied natural gas (liquified natural gas / LNG) from the refinery in Bontang, East Kalimantan in 2011 to LPG.

Minister of Energy Darwin Saleh in Jakarta, Friday said the transfer option is done to reduce the substantial import of LPG.

"Great idea to reduce imports," he answered reporters.

Earlier, the Executive Agency for Upstream Oil and Gas (BP Migas) estimates that there is excess production of as many as 20 cargoes of LNG Bontang next year.

The excess was due to reduction in LNG shipment to Japan.

In the next year, the government lowered the purchase of LNG from the Japanese company incorporated in the "western buyers" from the previous 12 million tons to only three million tons per year.

Conversion to LPG in the Bontang LNG already been done years ago following a reduction in exports to Japan and South Korea hit by the economic crisis.

At that time, six cargo of LNG was converted into 250,000 tons of LPG or half of the Bontang LPG refinery capacity of 500,000 tons per year.

Pertamina to import between 800000-1 million tons of LPG per year from Petredec to meet the needs continue to soar pascakonversi LPG and kerosene to LPG 3 kg.