Indonesia's PGN to Expand LNG Infrastructure, Invest $200 million

Indonesia’s gas distributor PT Perusahaan Gas Negara (PGN) plans to scale up its LNG receiving terminal infrastructure. It plans to allocate $200 million for the exercise.

The company expects its West Java LNG project to start operating this year. As for the other project in North Sumatra, the development of the project should begin during this year.

The terminals will serve state-owned power company PLN’s gas-fired power plants in Muara Karang, West Java, and Belawan, North Sumatra. 

PGN also plans to add another LNG receiving terminal in Lampung to meet demand from private-sector run gas-fired power plants, including that of Krakatau Steel.

With supplies of oil beginning to drop in Indonesia, domestic consumption is shifting towards natural gas which has increased the demand.