Gas Negara May Spend $250 Million to Build Indonesian LNG Import Terminal

PT Perusahaan Gas Negara, Indonesia’s biggest distributor of the fuel, may allocate $250 million to build a liquefied natural gas receiving terminal in Belawan, North Sumatra province, next year, an executive said. 

Gas Negara, based in Jakarta, will use internal cash and bank loans to finance the project, Finance Director Riza Pahlevi Tabrani said today in Jakarta. He didn’t provide details.

Indonesia, the world’s largest LNG exporter after Qatar and Malaysia, is increasing investment in infrastructure to meet rising domestic and overseas demand for the cleaner-burning fuel. 

The Belawan terminal will receive LNG shipments from Tangguh field in Indonesia’s Papua, Investor Daily Indonesia reported Sept. 7, citing President Director Hendi Prio Santoso.

LNG is natural gas that has been cooled to liquid for shipping to markets beyond the reach of pipelines.Source: Bloomberg