Indonesia, the world's third-largest LNG exporter behind Qatar and Malaysia, is seeking non-oil energy sources like natural gas to meet rising domestic demand for power and reduce consumption of crude oil as its reserves dwindle. For this reason, Indonesia is turning to Floating LNG as a cost-effective alternative to building pipelines.

A recent report in the Jakarta Post revealed that PT PERTAMINA and PT Perusahaan Gas Negara (PGN) inked a Joint Venture agreement to operate a floating LNG receiving terminal in the waters off West Java.

Construction on the terminal is slated to begin later this year, and completion is expected by 2011. The terminal will store between 1-1.5 million tons of LNG, and receive gas supplies from East Kalimantan of 11.75 million tons over 11 years.

Furthermore, Pertamina already plans to build a floating LNG receiving terminal near the capital Jakarta together with PGN, and recently announced that it will open a bidding round to procure ocean-going vessels to be converted into floating LNG-receiving terminals in East and West Java.

Those seeking updates on Indonesia’s burgeoning FLNG market should attend 3^rd IndoOGP, where industry leaders and key regulators like BPMIGAS are expected to deliver updates on investment opportunities.

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