President Director of state-owned oil and gas company Pertamina, Karen Agustiawan
State oil and gas company PT Pertamina and state electricity company PT PLN have signed a contract for the development of eight small-scale liquefied natural gas recipient terminals in the eastern parts of Indonesia.
Pertamina President Director Karen Agustiawan and PLN President Director Dahlan Iskan signed the contract in the presence of State Enterprises Minister Mustafa Abubakar here on Thursday.
Mustafa said the construction of LNG terminals would help the country reduce the use of fuel oils and slash state subsidy. According to him, the government expected to save Rp847 billion in oil subsidy by operating the eight LNG terminals.
The project would also help accelerate the development of eastern Indonesia, he said. "PLN and Pertamina are the first to speed up evenly distribution of development gains (in the country)."
Karen meanwhile said the eight LNG terminals which would have a combined capacity of 182 million cubic feet per day (MMSCFD) would be built between 2012 and 2015. The eight mini LNG terminals will be built in Tanjung Batu (East Kalimantan) with a capacity of 25 MMSCFD, Batakan (East Kalimantan) 15 MMSCFD, Pasanggaran (Bali) 25-30 MMSCFD, and Pomalaa (Southeast Sulawesi) 25 MMSCFD expected to start operations in 2012.
Karen said the Bontang refinery in East Kalimantan would supply gas to the four LNG terminals. The other LNG terminals will be built in Mataram (West Nusa Tenggara) 15 MMSCFD and Banjarmasin (South Kalimantan) 6 MMSCFD expected to start operations in 2013 and Gorontalo (North Sulawesi) 6 MMSCFD, Halmahera (North Maluku) 60 MMSCFD in 2015.
Dahlan Iskan said the gas supplies from the eight LNG terminals would overcome problems related to the use of fuel oils during the peak load. "To date, there is no other way but to rely on fuel oils."
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