Indonesia's Nusantara Regas has picked Golar LNG to build a liquefied natural gas receiving terminal near Jakarta, a Nusantara Regas official said on Tuesday.
Nusantara Regas is a joint venture by state energy firm Pertamina and local gas distribution firm PT Perusahaan Gas Negara (PGN) (PGAS.JK), for a 3 million tonnes a year receiving terminal.
Pertamina owns 60 percent of Nusantara Regas and PGN 40 percent.
"Golar will build a floating storage regasification unit at a cost of around $200 million," Maralda Kairupan, Nusantara Regas corporate secretary, said.
"The project is expected to be commissioned by the end of 2011," he added.
Separately, Pertamina's president director Karen Agustiawan said on Tuesday the cost of the whole project was estimated at between $300 million and $400 million.
Nusantara Regas signed a preliminary LNG supply deal with Total Indonesie, a unit of France's Total , to supply 1.5 million tonnes per year of LNG for 11 years to the receiving terminal.
The LNG will be supplied from Bontang LNG centre in East Kalimantan.
Nusantara also signed a heads of agreement to supply gas to Indonesia's power firm PT Perusahaan Listrik Negara.
Indonesia has struggled to develop its rich energy resources, turning into a net importer of crude oil in recent years.
Indonesia, the world's number-three LNG exporter after Qatar and Malaysia, is increasing its use of energy sources such as natural gas to reduce oil use because of high prices and dwindling domestic supply.
Nusantara Regas is a joint venture by state energy firm Pertamina and local gas distribution firm PT Perusahaan Gas Negara (PGN) (PGAS.JK), for a 3 million tonnes a year receiving terminal.
Pertamina owns 60 percent of Nusantara Regas and PGN 40 percent.
"Golar will build a floating storage regasification unit at a cost of around $200 million," Maralda Kairupan, Nusantara Regas corporate secretary, said.
"The project is expected to be commissioned by the end of 2011," he added.
Separately, Pertamina's president director Karen Agustiawan said on Tuesday the cost of the whole project was estimated at between $300 million and $400 million.
Nusantara Regas signed a preliminary LNG supply deal with Total Indonesie, a unit of France's Total , to supply 1.5 million tonnes per year of LNG for 11 years to the receiving terminal.
The LNG will be supplied from Bontang LNG centre in East Kalimantan.
Nusantara also signed a heads of agreement to supply gas to Indonesia's power firm PT Perusahaan Listrik Negara.
Indonesia has struggled to develop its rich energy resources, turning into a net importer of crude oil in recent years.
Indonesia, the world's number-three LNG exporter after Qatar and Malaysia, is increasing its use of energy sources such as natural gas to reduce oil use because of high prices and dwindling domestic supply.