Perta Daya Gas still undecided over Simenggaris mini LNG plant

By Bernard Loebs

PT Perta Daya Gas, a joint venture between PT Pertagas and PT Indonesia Power, is still discussing on whether to proceed with the construction of the planned mini LNG plant in East Kalimantan, or to switch to developing a CNG plant instead.

Pertagas and Indonesia Power are the subsidiaries of state-owned oil and gas firm Pertamina, and electricity firm PLN, respectively.

?Initially, the plan was to build a mini LNG plant, but suddenly there was someone who proposed for a CNG plant,? Salis Aprilian, Senior Vice President for Engineering and Operation Management at the Gas Directorate of Pertamina, told Petromindo.com Monday, without disclosing who made the suggestion.

Salis said that the suggestion to build a CNG plant was based on the argument that the investment cost would be cheaper than for a mini LNG plant. On the other hand, Pertamina insists on building a mini LNG plant considering that an LNG transportation vessel wold be more efficient than the CNG transportation mode, which requires larger vessel.

Salis hopes that the two parties, Pertagas and Indonesia Power, to be able to quickly make a decision whether it would proceed with the mini LNG plant or switch to CNG plant. The plant is expected to be on stream in 2016.

Under the initial plan, the mini LNG plant will supply gas to PLN?s power plants in East Kalimantan. The gas will come from the Simenggaris block operated by JOB PT Pertamina Hulu Energi-PT Medco EP Simenggaris.

Editing by Reiner Simanjuntak