BP Migas to allocate third train of Tangguh LNG for domestic market
Tuesday, January 3 2006 - 12:59 PM WIB
?The capacity of the first two-train (of Tangguh) have been fully contracted for exports. We are looking into the possibility of allocating production from the third one for domestic consumers, either for PLN (the state-owned electricity firm) or others,? BP Migas chairman Kardaya Warnika said.
The Tangguh LNG complex was initially designed to have two trains with a combined capacity of 7.6 million tons per annum and is scheduled to commence production late 2008. As for now, the project has secured contracts to export a total of 7.65 million tons of LNG.
According to British firm BP Plc, who leads the consortium that owns the Tangguh project, the areas that will supply natural gas to the Tangguh project have 23.7 trillion cubic feet of proven, probable and possible natural gas reserves, which are enough to supply five trains of LNG. The consortium could even build a total of eight trains of LNG if they launch new explorations to find new gas reserves.
Kardaya also said BP Migas had asked PLN whether the company interested to purchase from the third train of Tangguh.
?We also have received a letter from PT PGN (state-owned gas distribution) for request the LNG production from the third train to be allocated for its proposed LNG terminal in Java,? Kardaya said, adding that his office had approved the request from PGN and asked it to negotiate with the Tangguh consortium on a business-to-business basis.
PGN's president WMP Simandjuntak confirmed to Petromindo on Tuesday that his company was interested to buy one train of LNG from Tangguh for the LNG receiving terminal it plans to build either in Situbondo, Central Java or Cilegon, Banten.
Simandjuntak said PGN together with Japanese firm Itochu had made a feasibility study on the planned terminal in Situbondo. The terminal, which is expected to boost PGN's capacity to fulfill growing demands for gas in Java, is expected to start operation in 2009. (godang)