Pertamina may import LPG from Thailand
Indonesia's state-owned oil and gas firm Pertamina will import some 1.5 million tonnes of liquefied petroleum gas (LPG) from Qatar and the United Arab Emirates in 2009 to support the government's campaign to gradually replace highly subsidised kerosene with natural gas.
Pertamina marketing and trading director Ahmad Faisal said on Friday that the contract for the LPG imports would soon be signed with the Japan-based Ithocu Group, which has been appointed as agent for the LPG purchases. Ahmad added that Pertamina was also in talks with the Australian unit of BP and a Thai company to help meet Indonesia's LPG requirements, which are expected to amount to 3.9 million tonnes a year by 2010. Rising LPG imports are inevitable if the government's kerosene-to-LPG conversion programme is to be feasible, as the country's LPG production is not sufficient to meet domestic demand. At present, about 20 per cent of the country's LPG needs, which amounts to about 1.5 million tonnes a year, is imported. After being delayed for several months, the programme appears to now be back on track. Pertamina has designated 11 companies to supply gas stoves as part of the programme. The gas-stove scheme, which should have commenced in January, was delayed as the companies taking part in the tender for the procurement of the gas stoves failed to meet the requirements. Pertamina has allocated 200 billion rupiah (Bt760 million) for the procurement of 4.17 million LPG stoves as part of the scheme, which is expected to be launched next month. According to the government's estimate, the kerosene-to-LPG conversion programme will save up to Rp21 trillion annually. One kilogram of LPG is more or less equal in energy content to three litres of kerosene. Pertamina, the only LPG distributor in the country, sells LPG at Rp4,250 per kg, while heavily subsidised kerosene costs Rp2,000 per litre.
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