Pertamina to invest nearly $2b for energy diversification

State oil and gas company PT Pertamina (Persero) is ready to invest US$1.96 billion to build energy infrastructure to meet gas demand of domestic power plants and other industries until 2014.

The investment for energy infrastructure will support the country?s master plan of energy diversification, development of upstream gas industry and phasing-out of energy subsidy.

Pertamina Vice President Corporate Communications Mochamad Harun said the investment would be spent on construction of pipes and onshore receiving facilities for Floating Storage and Regasification Unit (FSRU) in West Java totaling $30 million; Central Java FSRU and gas pipeline connecting Gresik-Semarang-Cirebon worth $1.15 billion; Arun regasification and distribution of gas via pipeline between Lhok Sukhon and Medan worth $380 million.

Pertamina will also spend $400 million for the construction of mini LNG Receiving Terminals in Tanjung Batu, Batakan, Balikpapan, Semberah, Bali, Pomala, Jeneponto, Tello, Minahasa and Halmahera.

Harun said the state-owned company worked with all stakeholders, including the government, the upstream BPMIGAS, industry players and producers in realizing the infrastructure projects.

?Pertamina has received support from policy makers and producers and will now wait for realization of the support as so far we have yet to get assurance on LNG supply allocation,? he said.

Indonesia?s LNG demand will reach 10 million metric tons (mtpa) in 2014, or a half of the country?s LNG export. The West Java FSRU and the Central Java FSRU demand alone is expected to reach 3 mtpa.

Editing by Roffie Kurniawan