Berita

PT Pertamina and PT Perusahaan Gas Negara (PGN) have signed a joint agreement on the formation of a Joint Venture Company, Floating Storage and Regasification Terminal (FSRT) for LNG in West Java.

Contract between the two companies was signed by the President Director of PGN, Hendi Prio Santoso, and President Director of Pertamina, Karen Agustiawan.  The Minister of Energy and Mineral Resources, Darwin Zahedy Saleh and Minister for State Owned companies, Mustafa Abubakar were present to witness the signing at The Ministry of State Owned Companies, Jakarta.

The contract stipulates that Pertamina will hold 60% of shares, with PGN controlling the remaining 40%.  Pertamina will hold key positions within the company, sending representatives as the President Director, Technical Director and Operation, President Commissioner, and one Commissioner.  Representatives from PGN will hold positions as the Director of Finance and Administration, and one Commissioner.

This signing is a follow up to the basic terms of contract which was signed on April 17 2009 on the formation of a joint LNG terminal company between Pertamina, PGN, and PLN.  These terms of contract will include a joint collaboration to build an LNG Receiving Terminal with Floating Storage and Regasification Unit technology in West Java.

The LNG terminal is aimed at filling domestic gas demands, particularly PLN’s power plants.  Gas supply for these facilities will be sourced from East Kalimantan at a total volume of 11,75 million tons for a period of 11 years.

The joint consortium was originally slated to be signed by three companies which were mandated by the government to build and operate an LNG Receiving Terminal, namely PGN, Pertamina, and PLN.  PLN pulled out of this cooperation but will remain as the primary customer of this LNG Receiving Terminal.

Legal aspects of the newly formed company is expected to be completed very soon for the terminal construction to begin this year.  In the signed contract, Pertamina has stated its capability to complete an LNG receiving terminal within the time frame allocated.