Indonesia's PLN, Pertamina to build LNG terminal

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Sept. 19 -- Indonesia's state-owned power utility PT Perusahaan Listrik Negara (PLN) plans to cooperate with state oil and gas company PT Pertamina and state-controlled gas utility company PT Perusahaan Gas Negara (PGN) to build a $500 million gas-receiving terminal.

"We have agreed to form a consortium to finance and build the terminal," said PLN president director Fahmi Mochtar, adding, "We are still discussing how much each company will contribute to the project."

According to Fahmi, who noted that the facility will be constructed on a 170-hectare area at Bojonegara in Banten Province, said the three firms are still calculating the precise total budget required for the project.

Fahmi said the consortium expects to begin construction of the facility in 2009, with operations to begin in 2013. He said the plot of land belongs to PLN and would serve as the company's equity in the project.

The terminal, which will have a storage capacity of 800 MMscfd of gas, will be used to acquire gas from Pertamina and PGN.

Most of the gas from the terminal will be used by PLN, which earlier said it plans to increase gas consumption next year due to the conversion from fuel oil to gas at two of its largest power plants—Muara Tawar and Tanjung Priok.

PLN said it expects to consume about 258,783 billion btu of gas in 2009, with consumption expected to rise by 25.39% to 324,485 billion btu after the conversion.

The announcement coincided with reports that PLN has set its fuel oil consumption target for 2009 at 7.91 million kl compared to more than 10 million kl this year.

"The drop in fuel oil consumption in 2009 is thanks to the optimum use of gas and the operation of a number of new coal-fired power plants next year," Fahmi told members of the energy, mineral resource, research, and technology commission of the House of Representatives.

PLN's 2009 fuel consumption would consist of 4.59 million kl of high-speed diesel and 3.32 million kl of marine fuel oil, he said, adding that 6.41 million kl of the 2009 fuel consumption would be supplied by Pertamina and the remaining 1.5 million kl by other companies.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Sharp drop expected in global E&P spending in 2015, study says

01/08/2015 Global capital expenditures for oil and gas exploration and production projects are expected to drop 17% to $571 billion in 2015, according to Cowe...

SPDC agrees to £55 million settlement with Bodo community

01/08/2015 Shell’s Nigerian subsidiary Shell Petroleum Development Co. of Nigeria Ltd. (SPDC), reported signing a £55-million settlement agreement with the Bo...

Lundin reports 31% lower capex budget for 2015

01/08/2015 Swedish independent Lundin Petroleum AB has budgeted a total of $1.45 billion for development, appraisal, and exploration in 2015, marking a 31% de...

American Energy’s Utica, Marcellus units to merge

01/08/2015 American Energy–Utica LLC (AEU) and American Energy–Marcellus LLC (AEM), both affiliates of American Energy Partners LP (AELP), will merge in an al...

Moniz: Low crude prices unlikely to change US energy policies

01/08/2015 Crude oil prices below $50/bbl could force some producers to reduce capital expenditures if they go on for long, but are not likely to change US en...

Athabasca Oil promotes Broen to president

01/08/2015 Athabasca Oil Corp., Calgary, has promoted Rob Broen to president. Broen has been chief operating officer and retains that title. Tom Buchanan cont...

Petrotrin’s downstream takes hit from US shale, poor margins

01/06/2015 Trinidad and Tobago’s state-owned oil company Petrotrin is blaming the shale oil revolution in the US and poor refining margins overall for a $60 m...

Chevron makes oil discovery in deepwater gulf Anchor prospect

01/06/2015 Chevron Corp. reported a discovery of oil pay in multiple Lower Tertiary Wilcox sands in its Anchor prospect’s Green Canyon Block 807 Well No. 2, d...

Pipeline test finds Monte Carlo superior to FORM

01/05/2015 Pipeline failure probabilities calculated by the Monte Carlo method are better than those given by the first-order reliability method (FORM) but ha...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected