Kellogg completes feasibility study of W. Java LNG terminal project

Kellogg Brown and Root has handed over its feasibility study report on the planned construction of a liquefied natural gas (LNG) terminal in West Java to the state-owned electricity company PT Perusahaan Listrik Negara (PLN), Bisnis Indonesia newspaper reported in its Tuesday edition.

PLN president director Eddie Widiono said his company received the feasible study report in January.

?However, we will not (yet) release this report to the public as an internal team is still studying it,? Eddie said over the weekend during a meeting with ministry of energy and mineral resources in Jakarta.

PLN's evaluation focuses on LNG price, and investment amount.

?We don?t want to build this terminal in a hurry because we have yet to examine several things. For example if the terminal produces gas at a price of US$3.5 per MMBTU, will the consumers want to buy it or not?? he said.

Eddie said the project may cost PLN around $300 million and the PLN can?t build it on its own. Investors are welcome to participate in this project but we will see who will qualify to become our partner.

He also mentioned that PLN has already received a proposal from BP Indonesia and it is studying the proposal. (*)