PGN asked to build Banten LNG terminal project by itself

State Minister of State Enterprises Sofyan Djalil asked state gas distributor PT Perusahaan Gas Negara (PGN) Tbk to go ahead with the liquefied natural gas (LNG) receiving terminal project in Bojanegoro, Banten, on its own rather than with partners.

PGN?s partners in the project are state electricity firm PT. Perusahaan Listrik Negara (PLN) and state-owned oil, gas firm PT. Pertamina.

PGN, PLN and Pertamina signed a memorandum of understanding (MoU) on April 25, 2008 to jointly build and operate the liquefied natural gas (LNG) receiving terminal, designed with the capacity of 3 milion tons per annum (MTPA). PGN has been appointed by the government to lead the consortium.

Sofyan said that PGN could carry out the project by itself as Pertamina and PLN still have different perception regarding the project. He however did not specify the "different perceptions".

In December last year, PLN warned it may pull out of the project unless disagreements on several issues with its partners were settled.

Fachmi Mochtar, PLN?s president director, cited location for the project as a contentious issue. ?We are sticking with our initial proposal that the terminal be built onshore,? Fachmi said.

Meanwhile, PGN's CEO Hendi Prio Santoso said that rather than pursuing on the initial plan of building a 3 MTPA LNG terminal, the consortium may build a mini terminal with capacity of 1.5MTPA, or a floating terminal with capacity of 1 MTPA. (*)