PGN to build LNG receiving terminal in Lampung next year

State owned gas distribution company PT Perusahaan Gas Negara (PGN) moves ahead with its plan to build a floating storage and regasification unit (FSRU) in Lampung to meet the surge in gas demand in the province.

PGN?s Director for Investment and Risk Management, M. Wahid Sutopo, said in Jakarta on Monday that the feasibility study on the construction of the LNG receiving terminal was currently underway.

Wahid hoped the feasibility could be completed this year so that the construction could be commenced early next year. ?The feasibility study is currently underway. Gas from the terminal will be sent to power plants or industrial users in Lampung and West Java,? he said.

PGN President Director Hendi Prio Santoso said earlier that the company was still in talks with potential gas buyers on the construction of the FSRU. He said that the receiving terminal would be 100 percent owned by PGN.

In a statement earlier on PGN had said that it would build a number of FSRUs in the country to meet the surge in the gas demand. The FSRUs will be built in Belawan, North Sumatra and in the Gulf of Jakarta. In addition, the company plans also to build a FSRU which will be especially dedicated to provide gas supply to state-owned steel factory PT Krakatau Steel in Cilegon, Banten. (giok)