REPUBLIKA.CO.ID, JAKARTA - State owned listed gas distributor, PT Perusahaan Gas Negara (PGN) plans to build a liquefied natural gas (LNG) refinery to develop domestic market, especially in eastern Indonesia, Sumatra and Central Java. President Director of PGN, Hendi P Santoso explained that company had allocated five trillion IDR for the construction this year.

"We will build the LNG plant in areas without pipeline facility," Santoso said recently.

The five trillion IDR is taken from 15 trillion IDR of company's capital expenditures this year, while eight trillion will be used to acquire oil and gas blocks. The company will use the remaining 2 trillion IDR to develop facilities in some new areas.

PGN Director of Investment Planning and Risk Management, Wahid Sutopo said that PGN would supply gas with mini-LNG scheme in eastern Indonesia. PGN will supply gas plant in eastern Indonesia, where gas supply becomes a challenging problem there.

Meanwhile, company will use compressed natural gas (CNG) scheme in Semarang, Yogyakarta and Solo. Gas will be supplied from several wells in East Java. 

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