PGN to build LNG terminal in Sunda Strait gas distributor PT PGN has revealed a plan to build a new LNG receiving terminal in Sunda Strait to supply gas to state-owned steel producer PT Krakatau Steel (KS).

PGN president director Hendi Priyo Santoso said the planned floating storage and re-gasification unit (FSRU) would have a total capacity of around 3 million tons per year, or equal to 400 million standard cubic feet per day (mmscfd), similar to the West Java receiving terminal currently under construction.

“The new receiving terminal is designed to meet KS’ gas demand in the future and supply gas to industries in South Sumatra, Lampung and West Java,” he said at the signing of an MoU among five state companies – PT PGN, PT KS, fertilizer maker PT Pupuk Sriwijaya Palembang, coal producer PT Bukit Asam and PT Pertamina Gas – on Friday in Jakarta.

PGN corporate secretary Wahid Sutopo told reporters that his company would construct the receiving terminal using its internal budget.

The preparation process is to commence this year, but PGN should first talk with KS on when the steel maker would need the gas supply, he added.


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