Pertagas may join with PGN to build E. Java LNG terminal

PT.Pertagas, a gas distribution unit of state oil and gas firm PT.Pertamina said it would ask state gas distribution firm PGN to team up to build an LNG receiving terminal in East Java.

Development and Trading Director Harjana Kodiat told Petromindo.Com on Tuesday that Pertagas and South Korean top gas distribution firm Kogas has signed an MoU to conduct feasibility study of developing an LNG terminal in East Java.

?If the study shows that the project was economically feasible, we will ask PGN to join force to build the LNG receiving terminal,? he said, adding that the feasibility study is expected to be completed in 6 months.

PGN is also planning to build an LNG receiving terminal in East Java city of Pasuruan and had been scouting for LNG sources from producers such as Qatar, Tangguh LNG and Bontang LNG.

PGN?s Development Director Michael Baskoro told Petromindo.Com on Wednesday that PGN was not aware of Pertagas? plan and would still pursue development of the LNG terminal on its own.(godang)