ID :
104756
Fri, 02/05/2010 - 08:42
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Shortlink :
https://oananews.org//node/104756
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PERTAMINA, PGN TO FORM COMPANY PROVIDING LNG TERMINAL SERVICES
Jakarta, Feb 4 (ANTARA) - State-owned oil company PT Pertamina and fellow state enterprise State Gas Company (PGN) have reached a deal to form a joint venture engaged in LNG (Liquefied Natural Gas) Terminal services in West Java.
The cooperation agreement was signed by PGN Director Hendi Prio Santoto and Pertamina President Director Karen Agustiawan, witnessed by State Enterprises Minister Mustafa Abubakar and Energy and Mineral Resources Minister Saleh Darwin here on Thursday.
The joint venture would become fully operational by the end of 2011 with a 1 million to 1.5 million tons per year storage capacity.
PT Pertamina`s stake in the joint venture company would be 60 percent and it would have the right to appoint the company`s chief executive officer, technical director, operations director, chief commissioner and one commissioner.
PGN with a 40-percent stake would appoint the company`s finance director, administration director and a Commissioner member.
PGN Director Hendi Prio Santoto said the partnership was a manifestation of PGN`s and Pertamina`s common commitment to cynergize in meeting the country`s need for gas for power generation.
"PGN is constantly improving its natural gas distribution system and optimizing gas utilization. It also continuously develops LNG utilization to meet the country`s needs for gas, including piped gas supply to state electricity company PT PLN," Santoto said.
Gas to be supplied to the planned LNG terminal would come from East Kalimantan gas fields at a total volume of 11.75 million tons over a period of 11 years.
The terminal`s physical construction would start later this year after all documents on the joint venture`s formation had been signed.
The cooperation agreement was signed by PGN Director Hendi Prio Santoto and Pertamina President Director Karen Agustiawan, witnessed by State Enterprises Minister Mustafa Abubakar and Energy and Mineral Resources Minister Saleh Darwin here on Thursday.
The joint venture would become fully operational by the end of 2011 with a 1 million to 1.5 million tons per year storage capacity.
PT Pertamina`s stake in the joint venture company would be 60 percent and it would have the right to appoint the company`s chief executive officer, technical director, operations director, chief commissioner and one commissioner.
PGN with a 40-percent stake would appoint the company`s finance director, administration director and a Commissioner member.
PGN Director Hendi Prio Santoto said the partnership was a manifestation of PGN`s and Pertamina`s common commitment to cynergize in meeting the country`s need for gas for power generation.
"PGN is constantly improving its natural gas distribution system and optimizing gas utilization. It also continuously develops LNG utilization to meet the country`s needs for gas, including piped gas supply to state electricity company PT PLN," Santoto said.
Gas to be supplied to the planned LNG terminal would come from East Kalimantan gas fields at a total volume of 11.75 million tons over a period of 11 years.
The terminal`s physical construction would start later this year after all documents on the joint venture`s formation had been signed.
