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Pertamina Revives Plan for Floating LNG Terminal in Central Java

PT Pertamina, Indonesia’s state-owned oil company, said it will proceed with a plan to build a floating liquefied natural gas-receiving terminal in Central Java, almost four months after putting the project on hold.

The government asked Pertamina to continue construction of the terminal, which will have a capacity of 3 million metric tons of LNG a year, Hari Karyuliarto, the company’s gas director, told reporters in Jakarta today. Pertamina had initially decided to delay the project, Karyuliarto said May 3.

“We will try to meet the government’s order of getting the Central Java floating terminal to go on stream by 2014,” Karyuliarto said. Pertamina is seeking 1.5 million tons of LNG from domestic suppliers for the facility, he said.

Indonesia is increasing natural gas consumption for electricity generation and transportation to reduce petroleum use and cut fuel subsidies. The terminal will convert LNG into gas, which will be supplied to power plants run by state utility PT Perusahaan Listrik Negara and other industrial consumers, Karyuliarto said.

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