Australasia to build LNG hub in E. Java
Thursday, August 11 2016 - 03:15 AM WIB
PT Australasia LNG Indonesia is teaming up with PT Petrogas Jatim Utama, a company owned by East Java provincial administration, to develop a floating storage and regasification facility in the province?s Probolinggo city, Bisnis Indonesia reported on Thursday.
The paper said that the two companies signed on Wednesday a MoU for the estimated US$468 million LNG hub project.
President Director of PT Australasia LNG Indonesia Arya Setyaki said that feasibility study for the project is expected to be concluded this year, in the hope that construction can start next year.
The project will be developed in three phases, each with a capacity 300 mmsfcd. The LNG hub will distribute gas to industries in the province including power plants.
He added that while the company has yet to decide on the source of gas, it will prioritize domestic sources, although Australasia is ready to supply gas from Australia. (*)