Kadin proposes LNG receiving terminals in 34 provinces

By Godang Sitompul

The Indonesian Chamber of Commerce and Industry (Kadin) proposed to the new government of President elect Joko Widodo to develop LNG receiving terminals across the country?s 34 provinces to help facilitate gas distribution to consumers.

Kadin Deputy Chairman Natsir Mansyur said during an industry discussion on Monday that while the country has abundant reserves of gas, it lacks the necessary infrastructure facilities to channel the gas to the consumers.

?Our shortage is that we don?t have terminal that can store gas, we only have FSRUs. If the FSRUs break, it will be chaos,? he said, referring to floating storage and regasification units.

Natsir explained that the total investment requirement for constructing the LNG receiving terminals in 34 provinces is about US$9 billion.

He said that the private sector would fund the projects. He pointed out as an example PT Zadasa Indoventura Kapital, a private national investment firm, to help finance the projects. The government?s role is to ensure gas supply for the planned terminals, he added.

Editing by Reiner Simanjuntak