PGN To Invest $1 Billion For LNG Terminals In West Java And North Sumatra, Indonesia

Published: 26-Nov-2009

PT Perusahaan Gas Negara (Persero) Tbk (PGN) intends to infuse $1 billion to construct liquefied natural gas (LNG) receiving terminals in West Java and North Sumatra, the Jakarta Post reported. The company will seek some loans from banks to finance the LNG terminals.

“The investment in the terminals is about $100 million up to $150 million per unit,” [with some multiple units] PGN's President Director, Hendi P Santoso told reporters.

“We probably will find 30 percent of the budget needed from the internal cash flow, with the rest from bank loans,” PGN finance director Riza Pahlevi Thabrani said.

PGN has targeted to supply a maximum of 400 million cubic feet per day in additional gas supply from the West Java LNG terminal, and around 150 million cubic feet per day from the North Sumatra one.

For the West Java project, PGN had established a partnership with PT Pertamina, and PT PLN.

Meanwhile, for the North Sumatra project, PGN would be fully in charge of the construction and operation of the project.

The company estimated the two projects to start operations in 2012.