TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Govt to optimize absorption of domestic gas: VP
Vice President Jusuf Kalla said the government will continue to optimize the absorption of gas from domestic sources by, among others things, developing liquefied natural gas (LNG) receiving terminals in a number of regions
Change Size
V
ice President Jusuf Kalla said the government will continue to optimize the absorption of gas from domestic sources by, among others things, developing liquefied natural gas (LNG) receiving terminals in a number of regions.
'If we want to make use of our abundant natural gas supplies, we should have more receiving terminals,' he said ,as quoted by Antara, after visiting Sodegaura LNG receiving terminal owned by Tokyo Gas in Japan, on Sunday.
Kalla said Indonesia had not yet tapped the full potential of its natural gas sources, although it was an environmentally friendly energy source.
He further said Indonesia had been involved in a great deal of LNG distribution and shipping, but only rarely got involved in LNG receiving due to the poor infrastructure facilities.
Among the obstacles facing the Indonesian government was a large investment cost of more than Rp 10 trillion (US$1 billion) per terminal. 'An LNG receiving terminal needs a certain kind of deep sea port,' said Kalla.
Earlier, Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) spokesperson Rudianto Rimbono said the domestic market should have been able to optimize the absorption of excess LNG cargo.
He said only 94.74 percent of total 38 LNG cargo allocated last year could be absorbed. With poor infrastructure and a lack of LNG receiving facilities, the allocated gas supplies could not be fully absorbed, he continued.
On March 9, President Joko 'Jokowi' Widodo launched the operation of the Arun LNG Storage and Regasification Terminal located on Jl.Medan-Banda Aceh, Blang Lancang, Lhokseumawe.
'This terminal will lead to much more efficient work for Pertamina,' said the President.
The terminal is managed by PT Perta Arun Gas, the subsidiary of state oil and gas company PT Pertamina Gas (Pertagas).
Recently, the Tangguh block in West Papua has made its first LNG cargo delivery to the storage and regasification terminal in Arun.
SKKMigas head Amien Sunaryadi said the first cargo delivery would be used in the commissioning activity of the Arun terminal, which had just finished being built. (ebf)(+++)
