PGN may issue bonds to finance LNG receiving terminal development

IDX-listed gas distribution frim PT Perusahaan Gas Negara Tbk. (PGN) may issue bonds or borrow money from lending institutions to finance its LNG receiving terminal projects in Jakarta and North Sumatra, Bisnis Indonesia reported on Thursday, quoting a company official.

CFO Reza Pahlevi did not give detail about the size of the debts, but said that development of the two terminals will cost about US$400-500 million.

PGN, which partners with state oil and gas company PT Pertamina will build a floating LNG terminal in Jakarta with capacity of 1.5-3 million ton per annum. Another receiving terminal in Belawan, North Sumatra will be developed by PGN alone with capacity of 1.5 MTPA. Both terminals are expected to be in operations in early 2012.

PGN and Pertamina has secured supply of 1.5MTPA from Mahakam block for the Jakarta terminal. PGN is still in talks with BP Plc to get supply of 1 MTPA from Tangguh LNG project for the North Sumatra project. (*)