Pertagas wants to develop LNG receiving terminal for PLN

PT Pertagas, a gas distribution subsidiary of state oil and gas company PT Pertamina (Persero) said it was interested to build a floating LNG receiving terminal near Jakarta for state electricity firm PT PLN (Persero).

Planning and Development Director Harjana Kodiyat told Petromindo.Com that the Company is seeking cooperation with PLN to build the LNG receiving terminal. Pertagas is ready to compete if PLN wants to hold tender to build the receiving terminal, he said.

PLN has stated intention to buy LNG to meet gas demand for its Muara Tawar power plant which is located in Bekasi, West Java, as current supply from state gas distribution firm PT PGN (Persero) is no sufficient to meet requirement, forcing PLN to burn much more expensive fuel oil.

PLN Director Nur Pamudji said earlier this month that six LNG traders and LNG floating receiving terminal developers had approached PLN to offer LNG.

?They all offered to supply gas at PLN?s gate, which means PLN will not be responsible for the construction of the LNG receiving terminal and regasification unit,? he said without giving detail about the prospective suppliers.

He added that the suppliers offered LNG to PLN under 15-20 year contracts and would be sourced from Australia and Qatar. (godang)