PLN looks for LNG supply from E. Kalimantan, Malaysia

State-owned electricity company PT Perusahaan Listrik Negara (PLN) on Monday confirmed it is in talks on the possibility of liquefied natural gas (LNG) supply with East Kalimantan-based gas producers and Malaysia?s state-owned oil and gas firm Petronas.

?We are in preliminary talks with them (East Kalimantan-based gas producers and Petronas) about the possibility of LNG supply from East Kalimantan and Malaysia,? said director Ali Herman Ibrahim.

Total Indonesie, Unocal, and Vico are principal gas suppliers for Bontang LNG plant, located in East Kalimantan. Meanwhile, Petronas owns and operates three LNG plants in Bintulu, Sarawak.

PLN is planning to build LNG receiving terminal in West Java, which is expected to become operational in 2007/2008 to fulfill gas requirement for its power plants located on Java island.

Earlier PLN president director Eddie Widiono said the company will consider buying LNG from foreign countries. Qatar, according to Eddie, became the favorite because it has offered very cheap price in compared to the other countries. (alex)