Pertamina discontinues LNG terminal project, seen as unfeasible
JAKARTA,(Reuters) - Indonesia's state owned energy holding company, Pertamina, has decided not to go ahead with what would have been the country's second land-based receiving terminal for liquefied natural gas (LNG), its chief executive said.
Indonesia forecasts sharp increases in gas demand after 2020, but increases in domestic consumption of the super-cooled fuel have been hampered by an abundance of cheap coal and sluggish development of gas infrastructure.
"Today we are not going ahead, because it is not yet feasible to continue," Pertamina acting CEO Nicke Widyawati told reporters, referring to the project that would have been built in Bojonegara, not far from Jakarta.
The terminal, valued at up to $800 million, was to be developed in a joint venture between Kalla Group unit Bumi Sarana Migas and Pertamina, with financing from the Japan Bank for International Cooperation (JBIC).
The 4-million-tonne-per-year terminal was to be designed by the engineering unit of Tokyo Gas Co Ltd and was expected to come onstream in 2019.
"Gas demand has declined so it's not feasible from a business standpoint," Widyawati added, noting that if gas demand for power generation increased the decision to halt the project may be reviewed.
(Reporting by Wilda Asmarini Writing by Fergus Jensen. Editing by Jane Merriman)
As discussed in the HPI Market Data 2019 report, published in November by Gas Processing & LNG’s sister publication, Hydrocarbon Processing, rising propane and ethane supplies in the US have been enabled by greater production of shale gas.
Industry Trends: Norway targets global LNG market
Norway aims to become a leading player in the global LNG market during the next several years through the establishment of new, large-scale LNG terminals.
Regional Focus: Challenges of scaling up Africa’s LNG production
Several gas projects are underway in Africa, but they continue to be constrained by inadequate infrastructure, slow finance mobilization, lack of security and uncertainty over hydrocarbon regulations that are casting doubt on the outcome of the continent’s drive to meet its anticipated 128% gas demand increase by 2040.
GasPro 2.0: A Webcast Symposium
The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.
During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.
October 25, 2018 08:30 AM CDT