Singapore firm in mini LNG plant deal

Singapore Exchange-listed firm Asian Micro Holdings Limited said on Wednesday it had signed an MoU with PT Citra Nusantara Gemilang (PT CNG) to secure an order for 2 units of 25 tons/day of small scale Liquid Natural Gas (LNG) plants from PT CNG worth at least US$9 millions.

PT CNG has selected a site for the potential LNG plants and both parties also wish to consider having a Joint Venture jointly for the production of LNG in Indonesia, the company said.

Both companies also intend to work towards using small scale LNG plants to optimize any abandoned gas wells in Indonesia to produce LNG. Abandoned gas wells are gas fields where the gas supply is too low and less viable for it to be sent via gas pipelines.

The MOU is due to expire on 31st May 2008, to enable both parties to work out the requirements for detailed designing of the LNG plants based on the analysis of gas composition submitted by PT CNG, it added.

PT CNG is an Indonesian private which has interest in purchase, distribution and transportation of natural gas, especially by means of Compressed Natural Gas in Indonesia. PT CNG is the first company to deliver CNG to the industrial end-users in Indonesia and has an existing capacity of 6 mmscfd with business area in West Java, East Java and Sumatera. (alex)