Indonesia's PGN eyes Qatari involvement in Java LNG terminal

Jun 22, 2007 02:00 AM

Indonesia's state-owned gas transmission and distribution company Perusahaan Gas Negara is seeking Qatari involvement for its proposal to build a $ 600-mm LNG receiving terminal in East Java, a senior official said.
"We are seeking any cooperation with Qatari investors, whether through a cooperation in LNG terminal construction or in gas supply," said PGN's President Director Sutikno. "It's a potential investor. Talks are underway," Sutikno said.

Sutikno's remarks followed an announcement by local energy company Petrogas that it has teamed up with Rotterdam-based 4Gas to pursue an LNG terminal also to be sited in East Java. Petrogas is wholly owned by the provincial government of East Java. It signed a memorandum of understanding with 4Gas to carry out a feasibility study to access whether to build a fixed base or floating terminal.
PGN has plans for a 2- to 3-mm tpy LNG terminal in East Java, an industrial province where demand growth is robust. Gas demand in Java is projected to reach 2.5-3 bn cfpd by 2010.

Commenting on the possibility of obtaining LNG supply from Qatar, Sutikno said: "There is a possibility that we may get LNG supply from Qatar from 2012... . Qatar's LNG capacity has have been committed until 2012."
"We see PGN's proposed LNG terminal as possibly being able to start operating from 2012, so there is a possibility for us to secure LNG supply from Qatar. We should negotiate actively on this for sure," he added.

PGN had earlier said that construction on its proposed LNG terminal could begin in 2009 and that it might start operating in 2011. Besides Qatar, PGN also said it was eyeing domestic LNG supply from the BP-led Tangguh project in Papua.
The Tangguh project, in Bintuni Bay of Indonesia's far eastern Papua province, is setting up two liquefaction trains to produce at least 7.6 mm tpy of LNG.

Source: Asia Pulse Pte Ltd
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