Shell, PGN to jointly develop LNG plant

State owned gas distribution company PGN and oil and gas giant Shell have agreed to jointly develop a small-scale liquefied natural gas (LNG) plant in Indonesia to help cope with the gas shortage in the country, Kompas reported on Monday.

The memorandum of understanding (MoU) on the LNG cooperation plan was signed by PGN and Shell Indonesia in London on Friday.

Shell Indonesia?s president director and country chairman Darwin Silalahi said the two companies agreed to conduct a feasibility study on technical and financial aspects of the development of the LNG plant.

Shell would use expertise and experience in the development of the LNG plant, Silalahi said, adding that he hoped the cooperation would help Indonesia cope with its growing gas need. (*)