Tangguh LNG plant in Papua ready to supply receiving terminal
The Tangguh project in Papua led by BP is ready to supply 500,000 to 700,000 tonnes of liquefied natural gas (LNG) annually to a receiving terminal near Jakarta, an official at energy watchdog, BPMIGAS, said on Friday.
The terminal is expected to start operation by the end of 2011.
Indonesia has no LNG receiving terminal now. The world's third-largest LNG exporter after Qatar and Malaysia is seeking non-oil energy sources, such as natural gas and coal, to meet rising domestic demand for power and cut consumption of crude oil as its reserves dwindle.
Indonesia's state oil and gas firm Pertamina and local gas distribution firm PT Perusahaan Gas Negara (PGN) (PGAS.JK) plan to build the floating LNG receiving terminal near Jakarta, the capital, with capacity of around 3 million tonnes a year, the official said.
"Tangguh plant has the capacity to supply the Pertamina receiving terminal near Jakarta," said BPMIGAS spokesman Sulistya Hastuti. "The LNG will be part of diversion volume for Sempra and it will not affect exports."
U.S. firm Sempra Energy (SRE.N) has a 20-year contract to lift 3.6 million tonnes per year (tpy) of LNG from the 7.6- million-tpy Tangguh project. It has the right to divert half its volume to customers other than its own new terminal in Mexico.
The floating receiving terminal near Jakarta also has secured supply from the Bontang LNG plant with volume of 1.5 million tonnes per year.
A Pertamina official said some foreign companies, including Golar LNG Energy (GOLAR.OL), had submitted bids for the construction of the floating terminal.
"We are evaluating the bidders. We will announce the winners soon," the official, who declined to be quoted by name, said. He gave no other details.
The terminal is expected to start operation by the end of 2011.
Indonesia has no LNG receiving terminal now. The world's third-largest LNG exporter after Qatar and Malaysia is seeking non-oil energy sources, such as natural gas and coal, to meet rising domestic demand for power and cut consumption of crude oil as its reserves dwindle.
Indonesia's state oil and gas firm Pertamina and local gas distribution firm PT Perusahaan Gas Negara (PGN) (PGAS.JK) plan to build the floating LNG receiving terminal near Jakarta, the capital, with capacity of around 3 million tonnes a year, the official said.
"Tangguh plant has the capacity to supply the Pertamina receiving terminal near Jakarta," said BPMIGAS spokesman Sulistya Hastuti. "The LNG will be part of diversion volume for Sempra and it will not affect exports."
U.S. firm Sempra Energy (SRE.N) has a 20-year contract to lift 3.6 million tonnes per year (tpy) of LNG from the 7.6- million-tpy Tangguh project. It has the right to divert half its volume to customers other than its own new terminal in Mexico.
The floating receiving terminal near Jakarta also has secured supply from the Bontang LNG plant with volume of 1.5 million tonnes per year.
A Pertamina official said some foreign companies, including Golar LNG Energy (GOLAR.OL), had submitted bids for the construction of the floating terminal.
"We are evaluating the bidders. We will announce the winners soon," the official, who declined to be quoted by name, said. He gave no other details.