PGN, EWC in LNG supply deal

IDX-listed state gas distribution firm PGN on Monday signed an MoU with Energy Equity EPIC Sengkang (EEES) to buy LNG from Sengkang PSC in South Sulawesi.

Under the MoU Sengkang will supply LNG to PGN?s proposed receiving terminal, a release from PGN said.

EEES, which has 100 percent interest in Sengkang PSC, is a unit of ASX-listed firm Energy World Corporation Ltd. (EWC).

According to the release, Sengkang LNG has the supply potential of 1.5MTPA-5MTPA. Shipment is expected to start in 2012 for five years.

EWC in its recent report said that the Sengkang LNG Facility will have a production capacity of 2 MTPA and combine four modular LNG trains, each with a production capacity of 0.5 MTPA. Production of LNG from the modular LNG train planned is to commence in 2010.(bernard)