PGN to build three mini LNG plants next year

State gas distribution company Perusahaan Gas Negara (PGN) plans to build three more mini liquefied natural gas (LNG) plants next year as part of the company?s program in coping with the gas shortage in the country, Kontan daily reported on Wednesday.

PGN?s Corporate Secretary Heri Yusuf said in Jakarta on Tuesday that the three mini LNG plants would be built in Bali, Kalimantan and Sulawesi.

He said that the company is assessing the technology to be used for the LNG plants as well as selecting the locations of the LNG projects, which would be launched next year.

At present, PGN is building a mini LNG plant in Belawan, North Sumatra with total cost of between US$250 million and $300 million. ?PGN will use its own funds and bank loans to finance the LNG project,? he added.

?We are still choosing the technology for the LNG plant. We hope the project can be commenced in 2013,? he said.

Heri said that PGN would team up with PT Shell Indonesia in the construction and operation of the Belawan LNG plant. According to him, PGN and Shell are still in talks on the form of cooperation for the LNG project. (*)