PLN considers going alone in building LNG terminal

State-owned electricity firm PT PLN said Tuesday it was considering to go alone instead of seeking partner in building a planned liquefied natural gas (LNG) receiving terminal in West Java.

?We are preparing to go alone on the (LNG) terminal project because it is a critical point to secure fuel for our existing power plants and future plants in West Java,? PLN president Edie Widiono told Petromindo.Com. He did not elaborate.

But Eddie said PLN would start the first stage of the project and the company would seek partners to continue the project. ?We also have held talks on the project financing with some institutions,? Eddie said.

PLN has announced earlier that U.S. engineering company Kellogg Brown and Root has completed a feasibility study on the terminal project.

PLN also said last month that it might open engineering procurement and construction tender for the terminal in two months.

The LNG terminal is scheduled to be completed 2007/2008. The terminal will be built in two phases with first stage planned to be able to handle 400 million cubic feet of gas per day (MMCFD) or about 3 million tons of LNG per year, ramping up to 800 MMCFD. Estimated the investment needed to build the first phase receiving terminal is around US$300 million.

Meanwhile, the state-owned gas transmission firm PT PGN is preparing to construct a natural gas pipelines linking South Sumatra to West Java. The 520- kilometer pipeline will supply natural gas at a maximum rate of 0.7 billion cubic feet per day starting in 2007.

Eddie commented that PLN couldn?t just wait for the pipeline project to secure gas supply for its power plants especially in Java.

Aside from the existing gas power plants, PLN has also ordered to build another two power plants, the Muara Tawar and the Cilegon, with a total capacity of around 1,600 MW. The new power plants are scheduled to be operated by mid 2004 and mid 2006, respectively. (alex)