PLN will speed up construction of LNG terminal

State-owned electricity company Perusahaan Listrik Negara (PLN) will speed up the construction of the company's liquefied natural gas (LNG) receiving terminal in Cilegon, Banten in order to cope with the surge in the gas demand from the company's gas fired power plants, Investor daily reported Thursday.

PLN's deputy director for primary energy Tony Agus Mulyantono said in Jakarta on Wednesday that PLN was currently processing the tender for the construction of the LNG terminal, which would have receiving capacity of up to 250,000 metric tons per year.

"The construction of the LNG terminal which will cost about US$300 million to build will be completed within 30 months," he said, adding that the terminal would receive LNG supply from either Tangguh LNG plant in Papua or Bontang LNG plant in East Kalimantan.

He said that the construction of the LNG terminal was needed to meet the surge in the gas demand from the company's combined cycle power plants such as Tambak Lorok, Muara Karang and Muara Tawar power plants.

The gas needs for these power plants would reach about 1,500 MMSCFD by 2015.

On Nov 16, 2006, PLN director Ali Herman Ibrahim said that PLN is currently in talks with BP-operated Tangguh LNG project and a number of overseas LNG suppliers and PLN will hold on (the development plan) until LNG supply is secured. (*)