A feasibility study is being conducted by Indonesia’s Panbil Group on whether to build an LNG import terminal on Karimum Island.
According to a company executive, talking with Reuters, the terminal could be built in the next five years at a cost of between $600 mill and $800 mill.
It would be located at Pulau Asam, about 33 km from Jurong, Singapore’s oil and gas hub.
Indonesia is forecast to be short of natural gas in the next decade while the Indonesian Government has set targets to build more gas-fired power plants.
The feasibility study, funded by the US Trade and Development Agency (USTDA), will be conducted to determine the regasification capacity of the terminal. It will also study the economics of building a 55 km pipeline to supply gas to PT Trans Gas Indonesia (PGI).
It is envisaged that the terminal will have a storage capacity of up to 170,000 cu m, which would be used to tranship large cargoes onto small-scale LNGCs for re-distribution and for bunkering.
Supply sources have been identified as Indonesia’s Tangguh Train 3, PT Donggi Senoro and Cheniere’s Corpus Christi export terminal.
The study is expected to be completed by the end of this year, while the terminal would take around three years to build.