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2011 January 27   08:59

Indonesia's PGN plans 1.5-2 mln T LNG terminal in Sumatra

PT Perusahaan Gas Negara (PGN) , Indonesia's biggest gas distributor, said on Thursday a planned floating LNG regasification terminal in northern Sumatra will have a capacity of 1.5 to 2 million tonnes a year, Reuters reports.

PGN has appointed Foster Wheeler to manage the terminal project in Belawan and a tender for engineering is expected to be finished by early in the second quarter, PGN's corporate Secretary Wahid Sutopo said at a gas conference in Jakarta.

"The capacity of the terminal will be around 200 million cubic feed per day of gas or 1.5 to 2 million tonnes per year," Sutopo told Reuters, declining to give a figure for investment.

PGN also plans together with state energy firm PT Pertamina a floating LNG receiving terminal near Jakarta with capacity of around 3 million tonnes a year, to be built by Golar LNG .

Indonesia, the world's number-three LNG exporter after Qatar and Malaysia, is increasing its use of natural gas at home to avoid costly imports and dwindling domestic supply. Its exports of LNG will fall to 362 cargoes this year from 427 in 2010.

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