JAKARTA, March 24 Indonesia's state energy firm
Pertamina and state power firm PLN said on Thursday they plan to
build 8 mini liquefied natural gas (LNG) receiving terminals in
eastern Indonesia, with a total capacity of 1.4 million tonnes a
The plants, added to three already planned on the islands of
Java and Sumatra, show that the world's No.3 LNG exporter is
focused more on ensuring future domestic supplies as output
wanes, meaning exports are likely to keep falling.
"I expect the projects will secure gas supply for PLN's
operations in eastern Indonesia and will be part of a more
integrated gas business for PLN's interests," said Karen
Agustiawan, Pertamina's chief executive.
The firms will carry out pre-feasibility studies for the
projects, aimed at taking cargoes of the super-cooled gas to
return them to natural gas for use by local industries. The
firms declined to give investment figures.
Southeast Asia's biggest economy is seeing growing gas
demand, and a commodity boom has increased economic growth
around the archipelago in places such as coal-rich Kalimantan.
Its exports of LNG, the third largest after Qatar and
Malaysia, will fall to 362 cargoes this year from 427 in 2010.
Agustiawan said mini LNG plants would be a solution for gas
needed in the scattered islands of eastern Indonesia, where it
would be difficult to construct a gas pipeline.
The first phase of building aims for see four terminals by
the end of 2012, two in east Kalimantan, one in Bali and one in
southern Sulawesi, to receive LNG from Pertamina's Bontang
export LNG plant that is supplied by a Total field.
Bontang's output is expected to fall 6 percent this year,
though Indonesia is considering sending surplus cargoes from
2010 to Japan to make up for its loss of nuclear power after the
Two more mini receiving terminals, in Lombok and southern
Kalimantan, are expected to be onstream in 2013, with the last
two in Sulawesi and Maluku islands by 2015, though delays are
common in Indonesia's energy industry.
PLN said the projects would help the company reduce fuel
costs by 874 billion rupiah ($100 million) per year. The
terminals are also expected to supply gas for state miner
Antam's power plant in southeast Sulawesi.
(Reporting by Alfian; Editing by Neil Chatterjee)