PLN awaits govt okay to build LNG terminal

State electricity firm PLN said on Thursday it was waiting for government?s approval as shareholder to build LNG receiving terminal in Cilegon, West Java.

?PLN is waiting for approval from Ministry of State Enterprises,? said Director Ali Herman Ibrahim.

The ministry, he said, has suggested PLN to source the LNG from BP-operated Tangguh project in Papua.

PLN is planning to invest US$300 million to build LNG receiving terminal that would be able to handle 3 million tonnes per annum of LNG. The LNG is needed to secure gas supply for PLN?s power plants. PLN said that facility would become onstream in 2009.

BPMIGAS Chairman Kardaya Warnika said in an earlier interview that BP is currently evaluating possibility to expand Tangguh LNG plant with output to be prioritized to fill domestic market. Tangguh?s first two trains would commence production in 2009 with output are fully contracted to export market.(godang)