Pacific Oil & Gas eyeing W. Java LNG terminal

A number of companies including Pacific Oil & Gas have expressed keen interest to take part in the construction of a liquefied natural gas (LNG) receiving terminal which will be built by three state-owned companies PT Perusahaan Gas Negara (PGN), PT Perusahaan Listrik Negara (PLN), and PT Pertamina, Kontan reported Saturday.

"Any party is welcome. The most important thing is that the project could be realized as soon as possible," PLN's Chief Commissioner Alhilal Hamdi said, adding that the project would occupy about 70 hectares of lands and absorb investment of between US$300 million and $500 million.

Initially, PGN, Pertamina and PLN would establish a consortium to build an LNG terminal in West Java. PGN has been appointed as the consortium's leader both in arranging LNG purchases and in the construction of the LNG terminal, PGN said on March 17.

PGN said that the LNG terminal would be built in West Java and have a receiving capacity of about 3 million tons of LNG a year or equivalent to about 400 million cubic feet per day. The terminal will receive LNG from Bontang and Tangguh LNG plants.

The West Java LNG terminal is expected to begin operation by the end of 2011, while the one in East Java will be built in later years after assessing the availability of the LNG supply and their potential demand. (*)