PLN mulls to buy LNG from Qatar

State-owned electricity company PT Perusahaan Listrik Negara (PLN) is mulling to buy liquefied natural gas (LNG) from Qatar, The Koran Tempo newspaper reported in its Saturday edition.

PLN will issue tender notice for the building of LNG receiving terminal next month.

PLN will consider buying LNG from foreign countries to fulfill the needs of its power plants located on Java island, PLN president director Eddie Widiono said in Jakarta.

Qatar, according to Eddie, became the favorite because it has offered very cheap price in compared to the other countries.

?We?re still negotiating with Qatari gas producers, Eddie told the Koran Tempo recently.

Eddie mentioned that currently several power plants were forced to use oil because gas suppliers were facing problems in supplying gas for the last two years to the power plants.

PLN will build LNG terminal to manage the shortage of gas problem.

?Our main consideration (to use gas) is because gas price is more cheaper than oil,? he said.

Qatar is the world?s largest LNG producer with 900 trillion cubic feet reserves. (*)