Pertamina, Kalla Group Agree to Build 4 Mtpa LNG Receiving Terminal in Indonesia

State owned energy firm Pertamina and Bumi Sarana Migas have agreed to build Indonesia’s second land based LNG receiving terminal, news agency Reuters reported Monday.

Bumi Sarana Migas, a part of Kalla Group, and Pertamina have inked initial agreement to develop the 4 million-tonne-per-year (MTPA) project.

Construction of the Bojonegara receiving terminal in Banten, Java should be complete by 2019, Pertamina CEO Dwi Soetjipto said in a statement without giving details about when work would commence, Reuters reported.

"Infrastructure is the main requirement in utilizing gas fuel, because once infrastructure is installed demand will be created," Soetjipto said, noting that a power plant was expected to be built afterward using gas from the terminal to feed into the western Java grid.

According to Reuters, the two firms have already completed pre-feasibility studies for the project, with Pertamina expected to utilise 100 percent of the regasification facility for 20 years.