PLN to open EPC tender for LNG terminal

State electricity firm PLN said on Wednesday it would open EPC tender for Indonesia?s first LNG receiving terminal in West Java by the end of this year, or six month later than originally scheduled.

?PLN?s Board of Commissioners had given approval on the project,? said PLN president Eddie Widiono.

Eddie said a number of engineering firms from Japan, Europe and United States had approached PLN to express interest.

He added that construction for the LNG receiving terminal facility would commence next year, with completion seen late 2007 or early 2008.

Eddie, however, said PLN would not commence LNG supply tender until at least later next year.

The planned LNG receiving terminal will be built in two phases with first stage planned to be able to handle 400 million cubic feet of gas per day (MMCFD) or about 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.

Engineering firm Kellog Brown&Root had completed feasibility study for the project. Financial advisor ABN Amro had also completed financial feasibility study for the project.

PLN considered the construction of LNG receiving terminal urgent as it predicted gas consumption to feed its gas-fired power plants in Java will increase tremendously after 2007. (godang)