PGN to wake up LNG terminal receiver

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PGN to wake up LNG terminal receiver

Thursday, 25 February 2010 09:17

JAKARTA: PT Perusahaan Gas Negara (Persero) Tbk (PGN) with PT Pertamina (Persero) will soon open a tender engineering, procurement & construction (EPC) for the construction of LNG terminal receiver in West Java.
PGN president director Hendi P. Santoso tells recipients LNG terminal development will be built, after PGN and Pertamina agreed on the division of ownership in the joint venture company to be formed.
"We will soon open a tender for the EPC. In relation to funding, Pertamina will be the lead, but we are from PGN also has set up his own fund," he said yesterday.

According to Hendi, the company is still calculating the details of

fulfillment of funding, both from internal and external.

In the project, PGN controlled 40% shares, and 60% owned by Pertamina with a total value of the overall investment of U.S. $ 150 million. With reference to the amount, PGN shall prepare a budget of about U.S. $ 60 million or about Rp570 billion to finance the construction of LNG terminal receiver in West Java.

"How much should we look for from the external to meet that need, we are still counting," said Hendi.

Based on the record business, PGN may seek bank loans to meet the funding LNG receiving terminal, with the scheme of about 30% of internal and borrowed the rest.

Recipient LNG terminal located in West Java will supply the gas needs for the business in the region, as well as PLN's power plants. Previously, PLN could express wish to join in this consortium. However, some time ago, PLN said back.

During 2009 PGN estimated net profit exceeded Rp5 trillion. Of that amount, the net profit from the distribution of pure gas Rp4, 2 trillion and the rest is profit from foreign exchange due to the strengthening of the rupiah against the U.S. dollar.

The number was increased a minimum of 688.9% when compared with the same period last year Rp633, 86 billion. PGN has the opposite conditions of the end of 2008 the exchange rate losses depressed performance.

In addition, exchange rate gains PGN's financial performance caused a sharp jump. This condition is different from what happened at the end of 2008, when the company suffered foreign exchange losses.