Panbil Group to Build LNG Terminal at Karimun

Panbil Group is conducting a feasibility study to build an imported liquefied natural gas (LNG) terminal in Karimun Islands, Riau Province, in the next five years. The proposed investment for the terminal could cost US$ 600 million - US$ 800 million and would be located at Pulau Asam, approximately 33 kilometers away from Singapore's Jurong oil and gas hub.

"We would like to propose certain options to accommodate Indonesia's energy security," Panbil Group Executive Director Patrick Aritonang told Reuters, Monday (8/17). Indonesia is facing a natural gas supply shortage in the next decade while the government has set targets to build more gas-fired power plants.

The study, funded by the US Trade and Development Agency (USTDA), will determine the regasification capacity of the LNG terminal, Patrick said, adding that Panbil is also reviewing the plan to build a 55-km pipeline to supply gas to PT Trans Gas Indonesia (TGI).

The LNG terminal, which would have a capacity of 170,000 cubic meters, could also be used to refuel ships and break large cargo in larger vessels to smaller ones to be distributed in the region. The gas supply will come from Tangguh Train 3, PT Donggi Senoro, and Cheniere Energy's Corpus Christi terminal. The feasibility study is expected to be completed in late 2020, while the terminal construction will take up to three years.