Govt to remove bureaucratic hurdles for LNG terminal projects

The government plans to cut down the red tape hurdles in relation to the plan to develop LNG floating storage receiving terminals in West Java and North Sumatra so that the projects can be completed within the targeted schedule.

There are three LNG terminals that will be built either individually or jointly by state owned oil and gas firm PT Pertamina and state owned gas distributor PT Perusahaan Gas Negara (PGN) in the those areas.

Energy and Mineral Resources Minister Darwin Zahedy Saleh said on Wednesday there were 80 documents related the projects that needed his approval.

"We will speed up the process so that the terminals could operate in September 2011 as planned. Earlier than the schedule will only spark worries about the quality of the facilities,? he said.

He added he was inventorying the permits that the two SOEs had to obtain for the projects.

?The most important thing is to execute and take short-cut measures to compress the time needed to get the licenses so that in the second semester of the year the floating terminal could operate," he said.

Director general for oil and gas Evita Herawati Legowo said her team was trying to speed up the process.

Legowo said PGN and Pertamina were required to ensure supply of LNG for the terminals. ?At this point, we find it difficult to make deals with LNG producers,? she said.

She added the government was in talk with upstream oil and gas regulator BPMIGAS to secure gas supply for the terminals. (godang)