LNG receiving terminal to be completed in 2012: PGN

State gas distribution company PT Perusahaan Gas Negara (PGN) has appointed a consultant to assess the total costs for the construction of a liquefied natural gas (LNG) receiving terminal in West Java.

PGN?s president director Hendi Prio Santoso said in Jakarta on Monday that the firm would cooperate with state electricity company PT Perusahaan Listrik Negara (PLN) and state oil and gas company PT Pertamina in building the receiving terminal.

He said that the three would set up a joint venture to operate and manage the terminal. ?We are still discussing the composition of share ownership in the joint venture,? he said.

Hendi said that the West Java receiving terminal targeted to begin operation in the second semester of 2012 along with the North Sumatra receiving terminal the three firms are also planning to build.

Officials from the three companies have repeatedly said they would jointly build the two receiving terminals, but they continue making conflicting statements, reflecting the fact they have yet to reach an agreement on the projects.

Last July for instance, Pertamina?s president director Karen Agustiawan said that Pertamina and PGN will build two separate LNG floating terminals. She said that Pertamina would build the LNG terminal offshore Jakarta, while PGN would build the one in North Sumatra. ?That?s the agreement reached in our latest meeting: Pertamina will concentrate in Java, while PGN in North Sumatra,? she said. (*)