PJU, 4Gas to build E. Java LNG receiving terminal

East Java provincial administration firm PT Petrogas Jatim Utama (PJU) and Netherlands firm 4Gas BV signed a memorandum of understanding (MoU) in Jakarta Tuesday to build a liquefied natural gas (LNG) receiving terminal in the province, Bisnis Indonesia reported Wednesday.

 

Both companies did not give further detail.

 

PJU’s president director Abdul Muin said that the signing of the MoU was a pivotal move that would allow for further economic and industrial development.

 

Earlier, State gas distribution and transmission firm PT Perusahaan Gas Negara (PGN) also planned to build LNG receiving terminal in East Java.

 

In order to obtain gas supply, PGN is negotiating with the BP-led consortium that owns Tangguh LNG project in Papua and the Cepu oil and gas project. The company also explore overseas markets to anticipate insufficient supply from domestic producers. (*)