PLN, Medco conduct feasibility study to build W. Java regasification terminal

State electricity company PLN and oil producer PT Medco Energi International are conducting a joint feasibility study over PLN?s plan to build a regasification (liquefied to gas) terminal in West Java, a PLN official said Thursday.

PLN?s vice president Eden Napitupulu said the W. Java terminal was planned to supply enough natural gas to three power plants in Muara Tawar and Muara Karang (West Java) and Tanjung Priok (North Jakarta). Muara Karang and Tanjung Priok plants are in operation, while the Muara Tawar project is being planned.

Eden said PLN and another oil and gas producer, BP Indonesia, had completed a similar feasibility study.

PLN will decide whether to pick Medco or BP Indonesia to build the regasification plant after finishing its feasibility study with Medco, Eden said.

Eden said that the gas terminal was expected to start operation by 2006. If this happens, PLN?s spending could be cut by Rp3 trillion (US$=Rp8,840) per year, he added. (godang)