Gov't says no decision yet on Java LNG terminal

Indonesia has not made a decision on whether to build a liquefied natural gas (LNG) terminal on Java island partly because the gas price would be uncompetitive, a mines and energy ministry spokesman was quoted by Reuters on Friday.

"We have a blueprint for an LNG terminal project as an alternative for supplying gas in Java. But the government hasn't decided yet," spokesman Nurwinakun told reporters.

"We are encouraging a pipeline as a priority to supply gas to Java instead of using LNG because the LNG price would be expensive."

Anglo-American oil giant BP Plc. had conducted studies to build LNG receiving terminal and regasification facilities in West Java. LNG would be sourced from Tangguh LNG in Papua.

An official at state electricity utility PT Perusahaan Listrik Negara (PLN) said it would study the possibility of building an LNG terminal on Java, Indonesia's main island, with oil and gas company Medco Energi. (*)