Pertamina studies location for LNG receiving terminal

State oil and gas company PT Pertamina said the location of its second proposed LNG receiving terminal facilities is currently being studied.

?Pertamina is now in the pre-FS stage for the second LNG terminal project. It could be in East Java or in Central Java,? Head of LNG Business Hari Karulyarto told Petromindo.Com on Thursday.

Pertamina President Director Karen Agustiawan said last week said the Company would build an LNG receiving terminal in East Java with capacity of 1.5-2 million tonnes per annum, similar to its proposed first LNG terminal project in Jakarta Bay, where it teams up with state gas distribution firm PGN.

Karen said the terminal would start operations in September 2011, similar to that of Jakarta Bay terminal, which is already at a more advanced stage.

Karen said that Pertamina would hold 100 percent stake in East Java terminal.

Hari also said that Pertamina is also scouting for LNG suppliers. ?Suppliers could be from domestic, overseas or combination of both,? he said.

If both plans are realized, Pertamina would operate 3-4MTPA of floating LNG terminals in 2012.

Pertamina and PGN said that LNG supply for Jakarta Bay terminal would come from Mahakam block through Bontang LNG plant in East Kalimantan. The JV will receive 11.75 million tonnes of LNG from Bontang over the period of 11 years.

Pertamina is in talks with Qatari LNG supplier on possibility to import LNG to both terminals, said Karen recently.

Hari meanwhile said the JV has selected Worley Parsons to carry out FS and FEED for the Jakarta Bay project.

PGN is also planning to set up an LNG terminal of similar size in Belawan, North Sumatra which is also expected to become onstream in 2011. A PGN official told Petromindo.Com that the company is in talks to divert 1 MTPA of Tangguh LNG that would be sent to Sempra in North America starting 2011. ?Talks is underway,? the official said. The official also said that PGN will also plan to import 500,000-1MTPA of LNG from Qatar to fill the supply gap. ?Probably we?ll form import consortium with Pertamina,? the official said.

State electricity firm PLN would be the main offtaker for the three LNG receiving terminals. (godang)