Information Media



Successful Collaboration, PT Pertamina Hulu Indonesia Supports Reducing Indonesia's LPG Imports

Successful Collaboration, PT Pertamina Hulu Indonesia Supports Reducing Indonesia's LPG Imports

Jakarta – PT Pertamina Hulu Indonesia (PHI), through its subsidiaries and affiliates, which are natural gas-producing PSC Contractors, has succeeded in supporting PT Badak NGL in implementing innovation in the form of the LPG Production Booster System (LPBS) method at the Bontang LNG refinery so that the natural gas produced by PHI can be recovered. Contribute to meeting domestic demand for Liquefied Petroleum Gas (LPG) and reducing national LPG imports.

The Bontang LNG refinery, managed by PT Badak NGL, processes natural gas into Liquefied Natural Gas (LNG) and its by-products, such as LPG and condensate. This refinery is designed to process gas with an 87-88% methane content range. However, since the third quarter of 2017, the Bontang LNG plant has received gas with a methane content exceeding the refinery design. As a result, the LPG component in the gas feed is used to produce LNG so that LPG cannot be shipped. This led to an increase in LPG imports for domestic needs.

SKK Migas, PHI, and PT Badak NGL formed a task force to conduct innovation studies to overcome this problem. In February 2020, the task force agreed to modify the Bontang refinery using the LPBS method. This method is carried out by adding a scrub column condenser cooler to the fractionation unit while changing the cooling medium from Propane Refrigerant to Mixed Component Refrigerant (MCR). This innovation is also a pioneer that can be applied to LNG plants worldwide.

The President Director of PT Pertamina Hulu Indonesia, John Anis, conveyed the Company's commitment to continue implementing innovation, collaborating, and creating significant value for all stakeholders, especially the government, communities, and shareholders.

"We support the application of the LPBS method at the Bontang LNG plant so that the natural gas produced by PHI can be shipped in the form of LPG. The successful shipment of LPG cargo by gas producers in the April 2022 – April 2023 period of more than 80 thousand MT resulted in additional revenue for the Company of more than 50 million dollars," said John.

John added that the collaboration between PHI and PT Badak NGL in this project won a special award from PT Pertamina (Persero), The Best Collaborative Action Program. "Due to the success of this innovation and collaboration, LPG cargo shipments can be carried out regularly so that it directly contributes to meeting domestic LPG needs and reducing national LPG imports, which can save the country's foreign exchange," he concluded.

PT Pertamina Hulu Indonesia (PHI) is part of Pertamina's Upstream Subholding, which manages upstream oil and gas operations and business according to ESG (Environment, Social, Governance) principles in Regional 3 Kalimantan. In 2022, through its subsidiaries and affiliates, PHI produced an average of 57.8 thousand barrels of oil per day (MBOPD) oil and gas production of 668.3 million standard cubic feet of gas per day (MMSCFD). In achieving its vision of becoming a world-class oil and gas company, PHI continues to carry out various innovations and technological applications in producing safe, efficient, reliable, compliant, and environmentally friendly energy to support #EnergiKalimantanForIndonesia. PHI is headquartered in Jakarta. Further information about PHI is available at https://phi.pertamina.com.

Copyright PT Pertamina Hulu Indonesia 2024. All Rights Reserved.