PGN eyeing Arun?s gas storages

State gas distribution company PT Perusahaan Gas Negara (PGN) is planning to take over PT Arun NGL?s idle gas storages, Kontan reported on Thursday.

PGN's president director Hendi Prio Santoso said in Jakarta on Wednesday that Minister of State Enterprises Mustafa Abubakar had asked the company to seek the possibility of using PT Arun?s idle gas storages.

He said that the company was studying if the idle gas storages could be used as its main storages for gas supply in the country.

A number of PT Arun?s gas storages has been idle due to the decline in the gas supply for the company?s liquefied natural gas (LNG) production.

Mustafa Abubakar confirmed PGN?s intention, saying that PGN would need between US$50 million and $60 million to modify the idle LNG tankers in order to be usable as storages. ?We hope the modification works can be completed in the first half of 2011,? he added.

In March last year, Upstream oil, gas authority BPMIGAS Chairman R. Priyono said that BPMIGAS was mulling to turn some facilities at Arun NGL plant into LNG receiving terminal. (*)