PGN, PLN and Pertamina sign LNG terminal agreement

PT Perusahaan Gas Negara (PGN) has formally signed a memorandum of understanding (MoU) on Friday with PT. Perusahaan Listrik Negara (PLN) and PT. Pertamina on their plan to jointly build and operate a liquefied natural gas (LNG) receiving terminal.

Under the MOU signed in Jakarta on Friday, the three state-owned companies would form a consortium to develop the LNG receiving terminal, PGN said in release statement.

PGN is expecting to build the LNG terminal soon.

PGN has been appointed by the government to lead the consortium to build two liquefied natural gas (LNG) terminals in West Java and East Java respectively.

PGN said in earlier statement, that the LNG terminal which would be built in West Java would have a receiving capacity of about 3 million tons of LNG a year or equivalent to about 400 million cubic feet per day. The terminal will receive LNG from Bontang and Tangguh LNG plants.

The West Java LNG terminal is expected to begin operation by the end of 2011, while the one in East Java will be built in later years after assessing the availability of the LNG supply and their potential demand. (denny)