Indonesia: Pertamina Plans Major Investment in LNG
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Monday, 30 January 2012 |
State-run oil and gas firm Pertamina has announced that it will invest $1.96bn to boost production of LNG between now and 2012. The company said that its investment will feed into Indonesia’s master plan for economic development (MP3EI), which is geared at diversifying consumption, boosting the downstream industry and reducing the burden of subsidising oil-based fuel.
The centrepiece of the investment programme will be a floating storage and regasification unit in Central Java and a 250-kilometer pipeline to transmit the gas to Gresik in East Java, Semarang in Central Java, and Cirebon in West Java. The projects will call for $1.15bn in investment, the company said, and will be operational in mid-2013.
Pertamina also plans to construct a $30 million floating storage and regasification unit in West Java, and to convert an LNG refinery in Aceh province to a receiving LNG terminal for $380m. Smaller receiving terminals in a number of locations nationwide will also be built in a joint venture with state utility firm Perusahaan Listrik Negara.
Pertamina projects that demand for LNG will grow to 10m metric tons by 2014, roughly half the country's current export volume. Spokesman Mochamad Harun said the government had approved the investment plan, adding that the company was still working to secure “assurance over LNG supply.”
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