Indonesia: Kalla Group to build Bojonegara LNG import terminal

Indonesia: Kalla Group to build Bojonegara LNG import terminal
Illustration purposes only (Image courtesy of Shelf Subsea)

Indonesia’s Kalla Group on Monday said that, through its unit Bumi Sarana Migas, it is ready to build an LNG receiving terminal in Bojonegara, Banten. 

According to the company’s statement the terminal will have a handling capacity of 4 mtpa, and is a response to the imminent decline in gas supplies in Western Java.

Nanda Sinaga, BSM’s spokesperson said the terminal plans were made in 2013 with Kalla Group seeking cooperation with the state-controlled Pertamina. It was reported last year that Pertamina will book the 100 percent of the regasification capacity of the terminal for a period of 20 years.

A Japanese technical consultant has been appointed in 2013 to study the feasibility of setting up the LNG terminal, and following the results of the study, Kalla Group agreed cooperation with a Japanese partner in 2015, the spokesman said.

Kalla Group owns the land that would be suitable for the construction of the terminal on the foreshore with adequate water depths to accommodate the largest Q-Flex and Q-Max LNG carriers.

The Rp 10 trillion (Approx. US$741million) investment will be fully funded through shareholder capital and support from Japanese financial institutions, the statement reads.

1 Indonesian Rupiah = 0.0000741444 USD


LNG World News Staff

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