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Sunday, 17 October 2010

South Korean Investors Sought for Indonesian. LNG Terminals Indonesia is the world’s third-biggest producer of LNG, behind Qatar and Malaysia


The government plans to ask South Korean investors to help finance three floating terminals for liquefied natural gas, the Energy Ministry said on Monday.

Evita Legowo, the ministry’s director general of oil and gas, said the proposed terminals would be discussed with South Korean investors at the third Indonesia-South Korea energy forum, to be held in Seoul on Thursday and Friday.

“We need many receiving terminals to supply power plants and industries,” Evita said.

The government plans to build three floating LNG terminals — in West Java, East Java and near Medan, North Sumatra — by the end of next year. The terminals will receive both imported LNG and gas from domestic fields which would then be processed at onshore facilities before being supplied to power plants and manufacturers.

In February, state-owned oil and gas company PT Pertamina and state gas distributor PT Perusahaan Gas Negara signed an agreement to form a joint venture company to build the $200 million West Java terminal, which will be able to supply 500 million cubic feet of gas per day to Greater Jakarta.

PGN will build the Medan terminal and Pertamina will build the East Java terminal. Each terminal will require an investment of $150 million to $200 million.

The three terminals will have a combined storage capacity of 3.5 million to 4 million tons.

Pertamina president director Karen Agustiawan said the company was seeking partners to help it develop the East Java and West Java terminals.

Indonesia is the world’s third-biggest producer of LNG, behind Qatar and Malaysia. However, it is planning to start importing LNG because of rising domestic demand. Most of the country’s existing LNG production goes overseas to meet long-term export contracts.

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