Reuters
JAKARTA, March 22 (Reuters) - Indonesia will invite South Korean investors to build liquefied natural gas (LNG) receiving terminals to supply domestic gas, a senior mines and energy ministry official said on Monday.
"We need many receiving terminals to supply power plants and industry in future. I will go to South Korea this week and will offer them investment in the sector," Evita Legowo, director general for oil and gas, told reporters.
She said Indonesia planned to build three LNG receiving terminals with investment from state oil and gas firm Pertamina and local gas distribution firm PT Perusahaan Gas Negara (PGN).
"We predict we need much more gas in future because of the growing domestic market," Legowo said.
Pertamina and PGN will build a floating receiving terminal near Jakarta in a joint venture. Separately, Pertamina will also build a terminal in East Java while PGN will build one in North Sumatra.
All three planned terminals will have a capacity of around 1.5 million tonnes to 2 million tonnes per year and they are expected to be completed in 2011 or 2012.
Indonesia has no LNG receiving terminals currently.
The world's third-largest LNG exporter behind Qatar and Malaysia is seeking non-oil energy sources such as natural gas and coal to meet rising domestic demand for power and to reduce consumption of crude oil as its reserves decline.
Indonesia has far more gas than oil but has limited supplies for its own use due to long-term LNG export commitments, which it is reviewing.
Source: http://business.asiaone.com/Business/News/Story/A1Story20100322-206028.html
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