PLN to go ahead with its plan to develop LNG terminal

State electricity firm PT PLN said it would go ahead with its plan to develop LNG receiving terminal in Cilegon, West Java as the terminal will help secure gas for its power plants.

The terminal is expected to be completed in 2009

The company?s director for primary energy power Ali Herman Ibrahim said that the company was waiting for the commitment on the LNG supply from BP Indonesia.

?We are still waiting for a master plan of the Tangguh project,? he said.

Ali claimed that upstream oil and gas regulator BPMIGAS had given its blessing to build another train in Tangguh which would be dedicated mainly to supply PLN.

He said that the terminal, PLN planned to build would have capacity to process 3 MTPA of LNG.

Currently almost all of the Tangguh?s first phase designed capacity of 7.6 MTPA is already contracted to Chinese, US and South Korean buyers. Tangguh LNG project, which is located in the easternmost province of Papua, is scheduled to commnce production in 2008.(godang)