Pertamina, PGN to build two separate LNG floating terminals
Thursday, July 2 2009 - 09:17 AM WIB
Pertamina?s President Director Karen Agustiawan said Pertamina would build the LNG terminal offshore Jakarta, while PGN would build the one in North Sumatra.
?That?s the agreement reached in our latest meeting: Pertamina will concentrate in Java, while PGN in North Sumatra,? Karen said.
The statement took industry analysts by surprise as both firms along with state owned electricity firm PT Perusahaan Listrik Negara (PLN) announced in April this year that they would set up a consortium to build a floating LNG terminal at Jakarta Bay (Muara Karang). They reached an agreement to build a floating LNG terminal after years of tough negotiation as the three firms had different proposals for the location and capacity of the terminal.
On June 6, the firms issued a joint announcement calling for bids from consultants to provide service for the project.
Karen said the plan to set up a consortium for the three firms is still alive. Pertamina and PGN have finally decided to build two separate LNG floating terminals ?for the sake of efficiency? because the government had pushed them to speed up the development of the terminals and PLN needs gas for their power plant in both areas.
?Once the project is realized, we shall offer to each other whether they (other consortium members) are interested to join in. That?s the type of cooperation we are going to do,? Karen said.
The terminal that will be built by Pertamina will supply the gas needs of PLN?s Tanjung Priok and Mura Karang power plants, while the one to be built by PGN will supply gas to PLN?s power plant in North Sumatra, Karen explained.
The floating LNG terminal to be built by Pertamina will have the capacity of 200-400 MMCFD, while the one to be built by PGN will be designed with the capacity of 100-150 MMCFD, she said.
Both terminals are expected to start operation in 2011, she said.
PGN and PLN's officials are not immediately available for comments. (Bernard)