Alfian, The Jakarta Post, Jakarta
State power utility company PT Perusahaan Listrik Negara (PLN) plans to build a gas-receiving terminal worth US$500 million in a bid to secure gas fuel for its power plants.
PLN president director Fahmi Mochtar said the company would cooperate with state oil and gas company PT Pertamina and state-controlled gas utility company PT Perusahaan Gas Negara (PGN).
"We have agreed to form a consortium to finance and build the terminal. We are still discussing how much each company will contribute to the project," he said.
PLN, Pertamina and PGN are still calculating the total budget required for the project, but estimate the terminal will cost about $500 million, Fahmi said, adding it will be built on a 170-hectare plot in Bojonegara, Banten Province.
The plot belongs to PLN and will be treated as company equity in the project.
The consortium will begin building the terminal in 2009, Fahmi said.
"We expect it to begin operations in 2013."
PLN head of primary energy Nasri said the terminal would be used to acquire natural gas from Pertamina and PGN.
The terminal's storage capacity will be about 800 million standard cubic feet per day (mmscfd) or about 4 million tons per year.
"Most of the gas from the terminal will be used for PLN's operations. Pertamina and PGN will distribute the remaining gas to their consumers," Nasri added.
PLN earlier said it would increase gas use next year by converting oil-based fuel to gas at two of its largest power plants -- Muara Tawar and Tanjung Priok -- in a bid to reduce costs by more than Rp 5 trillion (US$531 million).
The company plans to consume about 258,783 bbtu (billion British thermal units) of gas in 2009, with consumption expected to rise by 25.39 percent to 324,485 BBtu once the conversion starts.
PLN's gas consumption in 2008 reached an estimated 211,648 bbtu.