Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 9 -- Indonesia's state-owned PT Perusahaan Gas Negara (PGN) said it is seeking a strategic partner to implement its plans to construct an LNG terminal at Situbondo in East Java.
PGN Pres. Sutikno said the $450 million terminal would facilitate gas distribution to Java from the Tangguh LNG liquefaction plant being built in Papua and the Senoro LNG plant to be constructed in Sulawesi.
PGN Director Adil Abas said several investors indicated interest in becoming PGN's partner in the project, which will be implemented with a loan from Japan. Adil, who did not name potential investors, anticipates construction will start this year, with completion in 2009-10.
Last month Indonesian securities regulator Bapepam-LK fined PGN's board 5 billion rupiahs and the firm 35 million rupiahs for providing late, incorrect information regarding delays in a gas pipeline's operation.
Bapepam-LK launched a probe of PGN after the firm announced a start-up delay at its South Sumatra-West Java gas pipeline, sparking strong stock sales. The pipeline started operations Mar. 11, about 3 months later than originally scheduled.
Bapepam-LK found evidence that PGN was late by 35 days in disclosing the information, and that management failed to disclose immediately "a material fact" regarding the change in gas volumes it plans to transport along the pipeline.
Contact Eric Watkins at [email protected].