Indonesia's first LNG receiving terminal to be delayed to 2012

Indonesia's first liquefied natural gas receiving terminal near the capital Jakarta will begin operating in the first quarter next year, a delay from an expected September 2011 start, said chief economic minister Hatta Rajasa on Wednesday.

"There is a little issue on land reclamation. This may delay to the first quarter next year at the maximum," Rajasa said.

The floating LNG terminal is being developed by PT Nusantara Regas, 60 percent owned by PT Pertamina and the rest by PT Perusahaan Gas Negara Tbk .

PGN is planning another terminal in North Sumatra, and Rajasa said the North Sumatra terminal was also expected to begin operations in the first quarter next year.

The terminals are expected to supply gas for Indonesia's energy-hungry industries. Rajasa said future gas development projects would be focused on supplying the domestic market.
"But we will not change existing (export) contracts," he said.

Indonesia, the world's number-three LNG exporter after Qatar and Malaysia, is increasing its use of natural gas at home to avoid costly imports and dwindling domestic supply. Its exports of LNG will fall to 362 cargoes this year from 427 in 2010. Source: Reuters