Pertamina, PLN to jointly build 10 small LNG terminals

State oil and gas company PT Pertamina and state utility company PT PLN plan to build 10 small liquefied natural gas (LNG) terminals in eastern Indonesia, more than its earlier plan of four terminals.

?We have agreed to build 10 small LNG terminals, most of them will be located in eastern part of the country,? said Djohardi A. Kusumah, Vice President for Gas Business Development and Commercial at Pertamina during an Indonesia-Norway LNG seminar.

The development of the LNG terminals is part of a move to cut the consumption of fuel oil and ultimately reducing government's fuel subsidy.

Pertamina's President Director Karen Agustiawan said earlier that the capacity of the small LNG terminals will be around 182 MMSCFD, and will be built from 2012-2015.

These LNG terminals include Tanjung Batu in East Kalimantan with capacity of 25 MMSFD, Batakan in East Kalimantan (15 MMSCFD), Pasanggaran, Bali (25-30 MMSCFD) and Pomala in Southeast Sulawesi (25 MMSCFD). Development is scheduled to be start in 2012.

The remaining small LNG terminals will be built in Mataram, Banjarmasin, Gorontalo and Halmahera.

Djohardi said Pertamina has yet to secure LNG for all these planned terminals. Pertamina, he said, is discussing this matter with the upstream oil and gas regulator BPMIGAS to secure the supply allocation. (roffie)