September 18, 2008

Indonesian State Energy Companies to Build Gas Receiving Terminal in Banten

Text of report in English by influential Indonesian newspaper The Jakarta Post English-language website on 17 September

[Article by Alfian: "PLN, PGN, Pertamina to build gas receiving terminal"]

State power utility company PT Perusahaan Listrik Negara (PT PLN) plans to build a gas receiving terminal worth USD 500 million in a bid to secure gas fuel for its power plants.

PT PLN President Director Fahmi Mochtar said the company would cooperate with state oil and gas company PT Pertamina and state- controlled gas utility company PT Perusahaan Gas Negara (PT PGN).

"We have agreed to form a consortium to finance and build the terminal. We are still discussing how much each company will contribute to the project," he said.

PT PLN, PT Pertamina and PT PGN are still calculating the total budget required for the project, but estimate the terminal will cost about USD 500 million, Mochtar said, adding it will be built on a 170-hectare plot in Bojonegara, Banten Province.

The plot belongs to PT PLN and will be treated as company equity in the project. The consortium will begin building the terminal in 2009, Mochtar said.

"We expect it to begin operations in 2013."

PT PLN Head of Primary Energy Nasri said the terminal would be used to acquire natural gas from PT Pertamina and PT PGN.

The terminal's storage capacity will be about 800 million standard cubic feet per day (mmscfd) or about 4 million tonnes per year.

"Most of the gas from the terminal will be used for PT PLN's operations. PT Pertamina and PT PGN will distribute the remaining gas to their consumers," Nasri added.

PT PLN earlier said it would increase gas use next year by converting oil-based fuel to gas at two of its largest power plants - Muara Tawar and Tanjung Priok -in a bid to reduce costs by more than IDR 5 trillion (USD 531 million).

The company plans to consume about 258,783 billion British thermal units (bbtu) of gas in 2009, with consumption expected to increase by 25.39 per cent to 324,485 bbtu once the conversion starts.

PT PLN's gas consumption in 2008 reached an estimated 211,648 bbtu.

Originally published by The Jakarta Post website, Jakarta, in English 17 Sep 08.

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