Indonesia builds LNG base

Indonesia’s three state-run energy firms have decided to build a marine base to receive, store and re-gasify liquefied natural gas (LNG) off the north coast of Jakarta. Building the base at sea rather than on land as originally planned will halve the construction cost from the initially estimated level of about US$1 billion, the companies said. In 2008, oil company PT Pertamina, gas firm PT Perusahaan Gas Negara and electric utility PT Perusahaan Listrik Negara announced plans to build three LNG bases on the main island of Java and another on neighboring Sumatra. However, concerns about profitability prompted them to significantly downsize the plan. At full capacity, the new base will process 4 million metric tons of LNG a year. By avoiding land-acquisition and other costs, the firms hope to cut construction expenses by up to half. (April 13, 2009)