Indogas mulls building mini LNG plant

Privately owned oil and gas company PT Indogas Kriya Dwiguna will allocate up to US$500 million to build mini liquefied natural gas (LNG) plants in Java and Sumatra , Investor Daily reported Tuesday.

 

Under the business plan, the construction of the two LNG plants will be completed in 2009.

 

“It will take 24 months to complete the construction of one Mini LNG plant, with six months to be spent on planning and between eight and 10 months on construction. Therefore, the plants will not start production until 2009,” Indogas’ president director Faiz Shahab said in Jakarta Monday.

 

According to Faiz, the company will build the LNG plants each with a gas feed capacity of around 2.5-50 million cubic feet per day (MMSCFD).

 

Efforts were now underway by Indogas to complete the planning and financial scheme this year, he said.

 

He said that several local and foreign banks and corporate shareholders have expressed commitment to investing their funds in the project but, he said, the companyt would seek foreign partners because the projects need huge funds.

 

Established two years ago, PT Indogas will concentrate on downstream oil and gas business. (*)