PGN planning to build three LNG terminals

State gas company PT Gas Negara Tbk/PGN is planning to build three LNG (liquefied natural gas) terminals at a total cost of US$1.782 billion in Java and Sumatra, the company`s chief said.

"The terminals are needed in line with the increase in demand for gas that will happen in the next future," PGN President Director Sutiko said in a hearing with the House of Representatives (DPR)`s Commission VII here on Monday night.

The terminals would be built in West Java, East Java and Medan (North Sumatra), he said.

He said demand for gas in West Java was now recorded at 1,112 million standard cubic feet per day (MMSCD). Yet, gas supply capacity in 2011 was expected to be only 731 million cubic feet per day (MMCFD) which would be used up by 2024.

The West Java terminal, he said, was expected to be completed in three phases, namely in 2012 with a capacity of 1.5 million tons per year or 200 million metric standard cubic feet per day (MMSCFD); in 2018 with the capacity of 1.5 million tons per year and in 2024 with a capacity of three million tons per year or 400 MMSCFD.

"We will cooperate with state electricity company PLN and will also involve gas producers," he said.

Meanwhile, in East Java, demand for gas had reached 400 MMSCFD while gas supply in 2007 was only recorded at 170 MMSCFD and the gas reserves would be used up by 2014.

The East Java Terminal, he said ...