PGN to build regasification plant in Java

State gas transmission and distribution company PGN has planned to build a regasification plant in Java, which would be its first step to expand business into the liquefied natural gas (LNG) sector, Neraca daily reported Wednesday.

PGN president director WMP Simandjuntak was quoted as saying that it would set up a new entity called PT Distribusi Gas Indonesia (Drisgasindo) this year to execute the plan.

?We are ready to enter the LNG business by bringing in LNG from Tangguh, Papua. The gas market opportunity in Java is quite big and promising,? Simandjuntak told reporters.

Simandjuntak said that his company would first concentrate in the East Java market.

Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro welcomed PGN?s determination to enter the LNG sector because the current oil and gas law allowed it to do it. He added PGN could greatly help increase gas supply in Java.

As a matter of fact, BP Indonesia had also planned to build a US$380million regasification plant offshore West Java. The project, expected for completion in 2007, would have capacity to turn out 500 million cubic feet of gas per day.

LNG for the regasification facility would come from BP Indonesia?s LNG field in Papua. (*)