The terminal project will provide gas to the domestic market, particularly for the power and industrial sectors in Java. To that end, the government has created a consortium led by PGN, with participation from state oil and gas firm PT Pertamina and state power firm PT PLN.

The company will need to secure all its gas supply to ensure the project is economically feasible, said Bambang Banyudoyo, PGN director for development and head of the project's technical team.

"We might try to obtain (the gas) from relatively nearby locations in order to reduce transportation costs, including Australia, Iran or maybe Russia," he added.

Given the country's rapidly developing industry, the consortium is not worried about paying a potentially high price for the imported gas, Bambang said.

"I don't think there will be a problem with the price, if the local market is able to pay for it."

PGN president director Hendi P. Santoso said the project would require a total investment of $800 million, 70 percent of which would be secured in loans, with the remaining 30 percent in internal cash.

The company has been in talks with a number of foreign banks regarding the loans, but nothing has been finalized thus far, he added.

Bambang said he hoped his team would finish the project within the next few months, providing clarity on its technical and commercial aspects.

No details are available on the stakes held by the three companies in the consortium.

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