Kogas interested to participate in PLN?s LNG terminal project

State electricity firm PLN said on Tuesday that South Korean gas distribution firm Kogas had expressed interest to participate in PLN?s planned LNG receiving terminal in West Java.

?Kogas had expressed intention (to participate in the project), but we have yet going into specifics," PLN director Ali Herman Ibrahim told reporters on a sideline of a parliamentary hearing.

Ali said beside Kogas, a number of local and international firms had also expressed interest to participate in LNG receiving terminal project.

Anglo-American energy giant BP Plc, state oil and gas company PT. Pertamina, state gas distribution firm PT. Perusahaan Gas Negara Tbk., had expressed interest to participate in the project.

In a bid to secure long-term gas supply for its power plants in West Java, PLN is planning to build an LNG terminal in the western part of Java, with construction expected next year and completion expected 2007-2008.

Engineering firm Kellog, Brown & Root had recently completed the terminal?s feasibility study on PLN?s order.

According to Ali, the terminal will be built in two phases with first stage planned to be able to handle 400 MMCFD of gas per day or 3 million tons of LNG per year, ramping up to 800 MMCFD. Ali estimated the investment needed to build the first phase receiving terminal at around US$300 million.(godang)