Construction of PLN's LNG terminal in Cilegon to begin soon

State owned electricity company PLN will soon begin the construction of its liquefied natural gas (LNG) receiving terminal in Cilegon, West Java, one of the latest facilities to be built by to company to provide additional gas supply to its power plants in Java.

PLN's director for prime energy and power generation, Ali Herman Ibrahim, said in Jakarta last week that PLN had appointed Kawasaki as the provider of the construction facilities and SAC Nusantara as the developer of the LNG receiving terminal.

"We hope the two companies will soon begin the construction works," he said, adding that the planned terminal which would cost PLN about US$300 million to build would be used to provide additional gas supply to steam power plants Muarakarang and Muaratawar power plants.

He said that PLN would modify the fuel systems of the two power plants so that they would be able to use both coal and gas. The gas from the LNG receiving terminal which will have a capacity of 400 million standard cubic feet will be supplied to the two power plants through a submarine cable, he added. "We hope the LNG receiving terminal will be able to begin operation in 2006," he said. (Godang)