US$8 Billion Needed To Build LNG Receiving Terminals

Jakarta (Antara Bali) - Deputy general chairman of the Indonesian Chamber of Commerce and Industry for backward regions  Natsir Mansyur said around US$8 billion is needed to build Liquefied Natural Gas (LNG) receiving terminals in all Indonesian 33 provinces.

"That is a big investment but the terminals are to be built by the private sector, although we want the government commitment to support the plan by guaranteeing gas supply," Natsir said here on Wednesday.

He said Indonesia must not continue to depend on expensive oil for fuels while the country has gas reserves in abundance.

"I think  we should accelerate  the program to convert  oil fuel into gas fuel  as we already years too late," he added.

He said  revenue orientation  should be changed with benefit orientation in the use of oil to create multiplier effect on the economy.

"LNG is very strategic in determining development of the country's industry  and it would increase added value  in the country  and it could function as economic growth  driver," he said.

Natsir said Indonesia is a big gas producer  but it needs more support in the form of LNG infrastructure that it would have bigger impact  on the country's economy especially  in the regions.

"LNG requirement in the country is forecast to rise to 10 million metric tons  in 2014 or 50 percent of LNG for exports," he said.  

The government plans to build floating LNG receiving terminals in various areas in the country to support its program to increase the use of gas fuel to replace BBM.

The terminals will receive gas in the form of LNG from LNG plants  in the country  and liquefy it before being distributed to consumers.  

Indonesia has one of the world's largest gas reserves but its oil reserves have dwindling rapidly making the country, once a member of the OPEC, a net importer of oil. (WDY)