PGN eyeing Petronas-Brunei LNG gas

State gas distributor PT Perusahaan Gas Negara Tbk (PGN) is looking for gas supply for the LNG receiving terminal to be built in Belawan, North Sumatra. Aside from the supply from Tangguh field in Papua, the company was also looking for other sources, including Malaysia?s Petronas Nasional Berhad and Brunei LNG Sdn Bhd, said PGN head of corporate communication Santiaji Gunawan as quoted by Investor Daily.

Santiaji said the company would buy 160 billion British thermal unit per day (BBTUD) for the Belawan terminal, with a 10-year period contract. The company was currently still discussing the deal with Petronas and Brunei, he said.

PGN allocated US$250 million to build Belawan terminal, which would have a capacity of 1.5 million ton per annum (mtpa). The construction would start in 2011. Aside from Belawan project, the company would also build floating storage receiving terminal (FSRT) in West Java, with nearly the same amount of money allocated in Belawan.(*)