Eric Watkins
Senior Correspondent
LOS ANGELES, Mar. 7 -- Indonesian gas distributor PT Perusahaan Gas Negara is planning to build three domestic LNG receiving terminals at a combined cost of $1.67 billion.
"We estimate Indonesia would need at least three LNG receiving terminals with a combined capacity of 7.5 million tonnes/year," said PGN president director Sutikno.
One $650 million LNG receiving terminal, to be built in West Java, will be constructed in three stages, according to Sutikno. The first stage, a facility of 200 MMscfd of gas storage, will be completed in 2012. The second stage, also 200 MMscfd, will be finished in 2018. The third stage, with 400 MMscfd of storage, will be online in 2024.
Sutikno said PGN will build the second LNG receiving terminal in East Java at an estimated cost of $574 million. It will be constructed in two stages: the first, a 200 MMscfd facility, will be completed in 2011, and the second stage, also 200 MMscfd, would be finished in 2017.
PGN will build the third LNG receiving terminal in the North Sumatra town of Medan at an estimated cost of $446 million. The 200 MMscfd terminal will be online in 2011, pending completion of a gas pipeline linking the towns of Duri and Medan.
Sutikno said the three terminals will be supplied with LNG purchased from the Bontang LNG project in East Kalimantan and from West Papua's Tangguh LNG project.
Sutikno said PGN recently secured contracts to purchase a total of 1,063.3 MMscfd of gas from 15 producers, and he expects they will begin supplying gas from 2010. The firms include PT Pertamina, ConocoPhilips, Lapindo Brantas, BP Muara Karang, Kodeco, Santos Ltd., and Husky Oil.
Contact Eric Watkins at [email protected].