Yessar Rosendar

Pertamina, PGN to Split LNG Terminal Projects

State oil and gas producer PT Pertamina suspended a joint venture with PT Perusahaan Gas Negara to build three massive offshore gas-storage terminals in Java and North Sumatra, after the government demanded that the projects be finished a year ahead of schedule.

The two companies will now work separately to accelerate the projects, with Pertamina set to build two terminals in Java and PGN ready to build one in North Sumatra, Karen Augustiawan, Pertamina’s president director, said on Thursday.

“The construction of floating receiving terminals for liquefied natural gas [LNG] would normally take eight months to prepare and three years to build,” she said. “But the government wants the plants to be ready in two years, so we’ll have to lead each project separately to speed them up.”

Pertamina is now building the Java terminals to supply state electrical utility PT PLN’s 1,498-megawatt Muara Tawar power plant in Bekasi, West Java.

It is also building the 720-MW Muara Karang plant in North Jakarta, while PGN will continue to focus on building a floating terminal to supply PLN’s 700-MW gas-fired plant in North Sumatra.

Upgrades to the Muara Tawar gas-fired plant are being planned as part of the second phase of PLN’s troubled “fast-track” power-generation program.

PLN plans to increase capacity at the Muara Karang facility by an additional 500 MW.

“The floating LNG receiving terminal in Java will have a minimum capacity of between 200 million cubic feet per day and 400 mmscfd,” Augustiawan said.

“The terminal in North Sumatra will have a smaller capacity of between 100 and 150 mmscfd.”

Pertamina and PGN are currently searching for contractors to build the terminals.

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