PLN to open EPC tender for Indonesia?s 1st LNG receiving terminal

State electricity firm PLN said on Thursday that it may open EPC tender to build Indonesia?s first LNG receiving terminal in two months.

PLN president Eddie Widiono told reported that the decision was made to enable the company to secure gas supply for its power plants in Java.

He did not give further detail about the plan, but engineering firm Kellog, Brown&Root had been hired by PLN to complete feasibility study for the receiving terminal.

The LNG terminal, which is planned to be located in Western part of Java, is scheduled to be completed 2007/2008. The terminal will be built in two phases with first stage planned to be able to handle 400 MMCFD of gas per day or 3 million tons of LNG per year, ramping up to 800 MMCFD. Estimated the investment needed to build the first phase receiving terminal is around US$300 million.

Eddie further said that thus far PLN had yet decided who the partner will be in the venture, but he signal that the partner have access to LNG source as well as financial capability and experience to run LNG receiving terminal.

Companies like BP Plc, Medco Energi International Tbk, Kogas and Itochu Corp. had approached PLN over the possibility to joint the project. (godang)