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)
The US Energy Information Administration (EIA) reported in April that the US set records for natural gas production in 2017.
- Energy Web Atlas
Since market reforms first started in 1978, China has shifted from a centrally planned economy to a market-based economy, experiencing rapid economic and social development.
Russia aims to ally with Qatar in LNG competition with Australia and other LNG-exporting majors over the coming years.
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