Pacific Oil & Gas plans to build LNG and power plants

PT Pacific Oil & Gas Indonesia (PO&G) will build Liquefied Natural Gas (LNG) and gas-fired power plants as part of the company's expansion program in the country's energy sector, according to a press release.

PO&G's vice president Susilo Soputra said in Jakarta on Monday that the company had obtained a provisional license from the government to build an LNG plant, with an initial capacity of 5 million tons per annum.

"The LNG will be both exported and sold to domestic buyers," Susilo said, adding that the company's plan to build a gas fired power plant was also part of the company's expansion program in the gas exploration and production activities.

PO&G began its activities in the gas sector when it acquired 25 percent interest in the Jambi Merang gas field last year. The company plans to increase the gas production in the gas field to 120 million standard cubic feet per day (MMSCFD).

Susilo said that the additional investment needed to further expand the gas field's production activities would reach at least US$300 million. (godang)