Consortium decides to build LNG terminal offshore

State owned gas distributor PT Perusahaan Gas Negara (PGN)and consortium partners have decided to build a floating LNG (liquefied natural gas) terminal in Banten rather than an onshore terminal as an offshore terminal is considered cheaper.

"If we are going to build it onshore, we shall face problems related to land appropriation," PGN's CEO Hendi Prio Santoso said on Friday.

The firm together with two other state firms -- electricity firm PT Perusahaan Listrik Negara (PLN) and oil and gas firm PT Pertamina -- signed a memorandum of understanding (MoU) on April 25, 2008 to jointly build and operate the liquefied LNG receiving terminal, designed with the capacity of 3 milion tons per annum (MTPA). PGN was appointed by the government to lead the consortium

In December 2008, Hendi told a parliamentary hearing in Jakarta that the consortium may build a floating terminal with capacity of 1MTPA, smaller than the initally-planned capacity. (Godang)