Kellogg Brown & Root and Chiyoda join tender to build PLN's LNG terminal

Two world's major construction companies Kellogg Brown & Root (KBR) of the United States and Chiyoda Corp., of Japan are among the 33 companies that take part in the pre-qualification tender for the construction of the state owned electricity company's liquefied natural gas (LNG) terminal in Cilegon, Banten, Bisnis Indonesia reported on Tuesday.

Ali Herman Ibrahim, PLN's director for power generation and prime energy, said in Jakarta on Monday that at least 33 companies including KBR and Chiyoda had submitted their bids for the construction of the LNG terminal.

He said that the 33 companies submitted for different construction works but he did not elaborate. According to him, the tender is divided into three categories; the construction of the regasification plant, the evaporation plant and the construction of a jetty for the LNG tankers.

The construction of the LNG terminal which will have a capacity to receive 400 million cubic of gas per day will cost PLN at least US$300 million to build. The LNG terminal is expected to provide additional gas supply for the company's several power plants in Java.(*)