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Jakarta Post

PGN to soon focus more on LNG business

  /   Tue, September 1 2009   /  12:47 pm

State gas distributor PT Perusahaan Gas Negara (PGN) will focus more on the development of Liquefied Natural Gas (LNG) business in the future, because transporting gas through pipelines would not be a cost-effective for the majority of Indonesia's gas reserves. PGN president director Hendi Prio Santoso said Monday the company would make LNG business a priority, since most of Indonesia's potential gas supply would be sourced from areas outside Java. "We are aware that the gas reserves are dwindling and the existing potential sources are located in Masela *in the Timor Sea*, Tangguh *Papua* and the Deep Sea areas *East Kalimantan*," he said. Looking at this prospect, Hendi said it would be unwise to build pipelines to transport gas to customers, because it would require a huge amount of investment. PGN currently operates gas pipelines in Java and Sumatra. LNG techn...