Pertamina, Kalla Group to build LNG receiving terminal

By Godang Sitompul

State-owned oil and gas firm PT Pertamina is currently in talks with the diversified Kalla Group, which is controlled by the family of the country?s Vice President Jusuf Kalla, to develop an LNG receiving terminal in Bojanegara, Pandeglang Regency, Banten Province.

Pertamina Director Yenni Andayani said Monday that her company will set up a joint venture with Kalla Group?s subsidiary PT Bumi Sarana Migas to develop the project, which is estimated to require an investment of at least Rp 6.8 trillion.

The planned LNG receiving terminal will have a capacity of 500 mmscfd, or equal to 4 million tons of LNG.

Yenni, however, said that the two firms were still in negotiation, and have yet to sign an MoU.

Pertamina hopes that construction of the LNG receiving terminal could start in the fourth quarter of 2015. The facility will accommodate LNG from the Bontang LNG plant and import from the US estimated at around 1.5 million tons per year.

If realized, the LNG terminal will fulfill the LNG demand in West Java, thus Pertamina will develop transmission and distribution pipeline to the consumers, Yenni said.

Editing by Reiner Simanjuntak