Kalla Group plans LNG regasification terminal in Banten

The well-diversified Kalla Group, which is controlled by the family of Vice President Jusuf Kalla, through subsidiary PT Bumi Sarana Migas (BSM) plans to develop a land-based LNG receiving and regasification terminal with a capacity of 500 mmscfd (about 4 million tons) in Bojonegara, Banten Province.

BSM said in a statement on Monday that the project is made to anticipate the threat of gas deficit in the western part of Java in the future due to depleting gas reserves in Sumatra and rising demand. It added that the project is in line with the government?s wish for the private sector to participate developing infrastructure facilities in the country.

The company said in the statement that it will team up with a partner from Japan in the estimated Rp 10 trillion project, part of which to be financed from loans from Japanese lenders.

No further details about the project were provided including when construction will start and completed.

Editing by Reiner Simanjuntak