Bidders for PLN's LNG terminal shortlisted

Leony Aurora, The Jakarta Post, Jakarta

State electricity firm PLN will start the pre-bidding process for the construction of its planned liquefied natural gas (LNG) receiving terminal in Cilegon, West Java, and has shortlisted 18 local and international bidders.

The firm's director of power plants and primary energy generation Ali Herman Ibrahim said on Wednesday that about half of the companies participating in the pre-qualification process continued in the bidding process.

"We'll conduct the pre-bidding tomorrow (Thursday)," said Ali.

The LNG terminal, which will be the first in the country, includes LNG storage and regasification facilities. The project is estimated to cost some Rp 2.28 trillion (US$241 million).

According to data obtained from PLN, six companies have been shortlisted as possible contractors for the project's lot 1, which is for tank engineering, procurement and construction (EPC), while five consortia were selected for lot 2, the offshore EPC.

Seven companies, including Japanese and Korean companies, were picked to bid for lot 3, the main EPC, which also involves the development of interfaces between lots.

The planned terminal is part of PLN's efforts to boost and secure a natural gas supply for its power plants in West Java and to reduce the dependence on the more expensive oil.

The terminal, which is expected to start operation in 2007, will receive LNG from ships and convert it into gas. It will also get its supply through pipelines from Sumatra.

In the first phase of production, the terminal will have the capacity to supply some 400 million standard cubic feet per day (mmscfd).

Shortlisted Bidders for LNG Terminal Project

Lot 1 -- Tank EPC Contractors

No. Company

1 Toyo Kanetsu KK
2 Mitsubishi Heavy Industry Ltd.
3 SN Technigaz
4 Chicago Bridge and Iron
5 A consortium of Kawasaki Heavy Industry and Marubeni Corp.
6 A consortium of Ishikawajiwa Harima Heavy Industry and Sumitomo Corp.

Lot 2 -- Offshore EPC Contractors

No. Company 1 A consortium of PT Sac Nusantara and Deserco
2 A consortium of Mitsui Engineering Ship Building, Boskalis, PT Waskita Karya, and Sumitomo Corp.
3 A joint operation of Inter Beton BV and Decorient Indonesia
4 A consortium of PT Pembangunan Perumahan, PT Rekayasa Industri, and Inai Kiara Sdn, Bhd.
5. A consortium of PT Thiess Indonesia and Sandwell

Lot 3 -- Main EPC Contractors

No. Company
1. Chicago Bridge and Iron
2. Mitsubishi Heavy Industry, Ltd.
3. A consortium of Tractebel Gas Engineering Belgium and Inti Karya Persada Teknik
4. A consortium of Tripatra and Flour
5. A joint venture of Sofregaz and Techint
6. A consortium of Ishikawajima-Harima Heavy Industry and Sumitomo Corp.
7. A consortium of Darlim Industrial Co. Ltd., Daewoo Engineering Co., and Daewoo International Corp.

Source: PLN