LNGpedia

Indonesia plans LNG floating receiving terminal in N. Sumatra

JAKARTA, March 30 (Reuters) - Indonesia plans to build a liquefied natural gas (LNG) floating receiving terminal in North Sumatra to secure natural gas supplies for a power plant in the area, the mines and energy minister said on Monday.

Indonesia is seeking alternative sources of energy such as natural gas and coal to meet rising domestic demand for power and to reduce consumption of crude oil as its reserves dwindle. The new LNG terminal would supply state electricity firm PT Perusahaan Listrik Negara (PLN).

As the world’s number three LNG exporter after Qatar and Malaysia, it has in the past failed to meet its contractual commitments to traditional markets such as Japan, South Korea and Taiwan, often agreed more than a decade ago, as it seeks to switch more supply to the domestic market.

‘PLN badly needs more gas supply for its power plant in North Sumatra. We will anticipate by building an LNG floating receiving terminal there,’ Purnomo Yusgiantoro told reporters.

Yusgiantoro said he has asked state gas firm, PT Perusahaan Gas Negara Tbk (PGN), to build the terminal.

PGN’s president director Hendi Prio Santoso said the terminal is expected to have a capacity of around 150 million cubic feet of gas per day. He did not give a figure for the investment required.

‘Building floating LNG receiving terminal is quicker compared with gas pipeline. We will talk to BPMIGAS to see how we will get the LNG for this terminal,’ Santoso said.