BP plans RI's first regasification terminal<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Energy firm BP Indonesia, the Indonesian unit of Anglo-American
\nenergy giant BP PLC, plans to build a liquefied natural gas (LNG)
\nregasification facility to avert gas shortages in West Java.<\/p>\n
"The project will be the first LNG regasification terminal in
\nIndonesia and will provide an innovative long-term solution that
\nwill complement in situ West Java gas reserves," the company said
\nin a statement made available to The Jakarta Post Wednesday.<\/p>\n
The company said the feasibility of the project had been
\nconfirmed in studies begun in 1999.<\/p>\n
According to the details of the project, a new offshore
\nfacility in West Java will be constructed, where LNG shipped by
\ntankers will be stored and regasified.<\/p>\n
The gas will then be piped to consumers through offshore
\ntransmission facilities.<\/p>\n
Construction of the facility is planned to be completed in
\n2007, and the facility initially will supply 500 million cubic
\nfeet per day (MMFCD) of gas.<\/p>\n
The terminal will be supplied with LNG mainly from the Tangguh
\ngas field located in the Bird's Head area of Papua.<\/p>\n
The cost of the project, estimated at US$380 million including
\nthe cost of the pipeline, will be fully funded by private
\ninvestment.<\/p>\n
Gas from the facility will be used to meet new demand arising
\nfrom economic growth and to back-fill demand from the removal of
\nsubsidized diesel fuel.<\/p>\n
It is estimated that West Java will face a gas supply shortage
\nof 500 MMCFD by 2005. Currently, power plants owned by state
\nelectricity company PT PLN and large industries in West Java
\nconsume the diesel equivalent of 600 MMCFD of gas.<\/p>\n
The project is expected to result in increased revenue for the
\ngovernment from the development and supply of gas, and reduce the
\nhigh costs of diesel consumption. Savings from the project are
\nexpected to amount to Rp 3.7 trillion per year.<\/p>\n
Construction of the new facility will support the government's
\ncampaign for the use of gas, aid the development of Papua and
\nstrengthen economic ties between the eastern and western regions
\nof Indonesia.<\/p>\n
BP and PLN have signed a memorandum of understanding to
\njointly study the possibility of using the new facility as a gas
\nsource for PLN's power plants in West Java, with the study
\nexpected to be completed by the end of this year, the statement
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bp-plans-ris-first-regasification-terminal-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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