Indonesian state-owned energy firm Pertamina said it would build a small-scale regasification plant at its Cilacap oil refinery located on the island of Java.
This project would supply 111 million standard cubic feet per day of gas for 20 years to the Cilacap refinery, according to a statement by Pertamina.
In addition, Pertamina will spend about $151.7 million on the import facility.
Pertamina said its units have signed three heads of agreements to develop the project. The units include Perusahaan Gas Negara and Badak LNG, the operator of Pertamina’s Bontang LNG export terminal in East Kalimantan.
The agreement covers three scopes. PGN and KPI signed a deal for the provision of LNG infrastructure while PGN and Badak LNG will provide LNG storage and breakbulking facilities, Pertamina said.
Moreover, PGN and PIS signed a deal for “the utilization of LNG ships with a long-term time charter scheme or other LNG transportation schemes,” the state-owned firm said.
Pertamina said that the project would also develop the retail LNG market in southern Central Java.
The company’s Cilacap refinery, one of 7 processing units in Indonesia, has a production capacity of 348,000 BSD.
This refinery supplies 34% of the national fuel needs or 60% of the fuel needs in Java, making it the largest refinery in Indonesia, Pertamina said.