BP sees West Java could consume 3.5 MTPA of LNG
Wednesday, October 16 2002 - 05:34 AM WIB
"Based on our studies, we see western part of Java could easily consume 3,5 MTPA of LNG by 2008, which is about one train of LNG. By that time demand for electricity will increase rapidly in West Java," BP Indonesia president Bill Schrader told Petromindo.Com
"If you look at the decline of existing fields and some reasonable projection on growth in demand for gas, you can see 3.5 MTPA of LNG coming into West Java."
Schrader said demand growth would be derived from growth in electricity sector and increasing incentive to substitute fuel with cheaper gas.
BP has been planning to build LNG receiving terminal in the north coast of West Java, and according to some sources, the plan has been approved by the government.
Schrader refused to reveal the amount of money that will be invested to build receiving terminal.
"It's too early to say how much money will be invested, but I can assure that LNG price will be competitive compared to piped gas," said Schrader.
BP is going ahead to build two trains of LNG at first phase in its Tangguh giant field. BP has secured 2.5 MTPA sales for 25 years starting 2007 to Fujian province in China and is negotiating some more sales deals with several potential customers. BP is also eyeing huge potential market in West Java for Tangguh LNG.
Demand for natural gas has been increasing rapidly in West Java and existing supplies is predicted to decline over the years.
State gas distribution company PGN is planning to bring South Sumatra natural gas to West Java at the maximum rate of 700 MMCFD and is expected materialize in 2006. PGN is also planning to build pipeline grid that would transport East Kalimantan gas to West Java through 1,700-km pipeline. (alex)