PLN mulls cooperation with BP to build regasification terminal in W. Java
Tuesday, December 10 2002 - 11:52 AM WIB
PLN vice president Edden Napitupulu was quoted as saying that the regasification facility was meant to supply enough natural gas to its power plants in West Java.
Edden said however that PLN would build the facility even without cooperation with BP, the Indonesian unit of world oil giant BP Plc.
?Considering the strategic function of such a facility, with or without BP, we intend to build it,? Edden said.
Edden hopes that the regasification project will be completed in 2005, one or two years ahead of BP?s plan. Earlier reports said West Java would face gas shortage of an estimated 500 million cubic feet per day (MMCFD) in 2005.
Aside from BP, PLN had also approached other investors to cooperate in building the facility, They included state oil and gas firm Pertamina and oil producer PT Medco Energi International, Edden said.
Currently, PLN operates two gas power plants in West Java namely Muara Karang and Muara Tawar. The gas terminal was also planned to supply gas to Jakarta?s Tanjung Priok plant, Edden said. The plants have combined capacity of 1,600 megawatts.
Edden said natural gas reserves in West Java had depleted.
Earlier reports said that BP had planned to invest US$380 million in the Muara Tawar regasification project, and that liquefied natural gas to be processed in the plant would come from the company?s Tangguh field in Papua province.
BP reportedly had conducted feasibility studies on the project since 1999.
Meanwhile, oil and gas expert Kurtubi said he was against BP?s plan to build the gas terminal saying that transmitting gas from other parts of Java to West Java would be much less costly than bringing in liquefied natural gas (LNG) from Tangguh.
Kurtubi said natural gas for West Java could come from ExxonMobil?s gas field in Cepu, Central Java, and from other fields on the island which are operated by other production sharing contractors. (*)