PLN asks to offtake 60 percent of LNG receiving terminal capacity

State-owned electricity company PT Perusahaan Listrik Negara (PLN) hopes it will be able to buy at least 60 percent of gas from the proposed 3 MTPA receiving terminal project in West Java.

PLN's president director Fahmi Mochtar said in Jakarta Thursday that the gas from the LNG terminal would be used to meet the growing gas demand of a number of the company's combined cycle power plants in Jakarta and Bekasi.

?All business scheme options are still being discussed. For sure, 60 percent of the output will be allocated for PLN," he said.

Fahmi said that PLN initially planned to build its own LNG terminal to meet the gas needs of the company's combined cycle power plants. "But the government wanted us to jointly build the terminal together with state gas distributor PT Perusahaan Gas Negara (PGN) and state oil and gas firm PT Pertamina," he said.

PGN, Pertamina and PLN would establish a consortium to build an LNG terminal in West Java. PGN has been appointed as the consortium's leader both in arranging LNG purchases and in the construction of the LNG terminal.

In March 2008, PGN said 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. (*)