Korean firms plan to build $2 billion CNG facilities
Friday, July 1 2011 - 02:11 AM WIB
The consortium which will comprise of Korea Electric Power Corp (Kepco) as a lead, Korea Gas Corp (Kogas) and Korea National Oil Company (KNOC) plans an integrated CNG industry which will include the development of gas field with a reserve capacity of 0.5 trillion cubic feet (Tcf), CNG processing, transmission and receiving facilities.
Kepco?s general manager Kim Young Seng said in Jakarta on Thursday that the CNG would be partly used to supply a gas-fired power plant which would be built with a capacity of 750 megawatt in Bojanegara.
The other part of the CNG will be used to supply an ammonia plant which will be built near the power plant, he said during an Indonesia-Korea energy forum. ?About 66 percent of the ammonia production will be exported and the rest to supply the domestic market,? Kim added.
He said the South Korean companies had prepared the Bojonegara project since October, 2004 with the development of a liquefied natural gas (LNG) plant as its main project. However, due to a series of delays, Kepco later changed the project focus into the development of CNG, Kim said.
Meanwhile Evita Herawati Legowo, the director general of gas at the Energy and Mineral Resources Ministry, welcome the Korean companies? plan. She said that a number of gas fields in West Java can be used to support the CNG projects.
?We will find the time to discuss it with Kepco, PLN, Pertamina and possibly PGN,? she added. (*)