The Energy and Mineral Resources Ministry`s director general of oil and gas, Evita Legowo, said here on Friday the three LNG terminals would be built at three locations, namely Jakarta, Belawan (North Sumatra) and Arun in Aceh.
"The operation of the terminals will reduce domestic gas supply problems," she said.
She said the LNG terminal in Jakarta is expected to start operating in the first quarter of 2012 while that in Belawan in the second quarter and that in Aceh in the third quarter of that year.
She said the government also plans to build another LNG terminal in Semarang, Central Java, which is expected to operate in 2013.
The groundbreaking of the LNG terminal project in Jakarta was carried out on Friday morning by the director for general affairs of state-owned oil/gas company PT Pertamina, Waluyo.
The project is carried out by PT Nusantara Regas which is a joint venture of PT Pertamina and state-owned gas company PT PGN respectively holding 60 and 40 percent shares.
The capacity of the floating terminal is planned at three million tons or 400 million cubic feet per day (MMSCFD) with an initial capacity of 1.5 million tons.
The terminal will receive LNG from the refinery in Bontang, East Kalimantan, totaling 1.175 million tons a year based on a ten-year contract or totally reaching 11.75 million tons.
Pertamina`s spokesman M Harun said his side is still seeking supply from other sources to meet the terminal`s needs.
The gas will be used to meet the demands of Muara Karang and Tanjung Priok power plants in North Jakarta.
The Arun terminal meanwhile will be modification of its old function as a supplying terminal into a storage terminal.
"So it is only being reversed so that not much investment will be needed," he said.
He said LNG supply to Arun was expected to come from Bontang or Tangguh in Papua.
The Arun terminal built by Pertamina wiil supply gas to fertilizer companies, power plants, paper and other industries.
Evita said the Belawan terminal which would be built by PGN has received supply up to 140 MMSCFD.
The gas from the terminal with a capacity of 200 MMSCFD will be used by PLN (state power company) totaling 140 MMSCFD and industries 60 MMSCFD.
The LNG to be supplied to Belawan terminal totaling 140 MMSCFD will come from the shifting of exports to Sempra in the United States.
Based on a contract, exports of LNG from Tangguh reach 3.6 million tons a year with the possibility for 50 percent of them or 1.8 million tons a year to be shifted to other buyers with a compensation fee of around one US dollar per MMBTU to Sempra.
Besides Tangguh the PGN will also open an import option to meet the need of gas for the Belawan floating storage and regasification unit. (*)
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Editor: Jafar M Sidik
Copyright © ANTARA 2011
