Japan’s Tokyo Gas and Pertamina of Indonesia reportedly intend to build an LNG receiving terminal in Bojonegara, West Java.
The terminal with a price tag of around $810 million would have a storage capacity of 200,000 to 400,000 kiloliters.
The operation’s are expected to begin in 2018, Nikkei reports.
Natural gas from the terminal will be used to feed the rising domestic demand and natural gas-fired power plants.
The import terminal will be run by a joint venture created by Tokyo Gas and Pertamina with Mitsui and Japan Bank for International Cooperation expected to take a stake, according to the report.
The LNG terminal marks the first step in cooperation between Tokyo Gas and Pertamina initiated through a memorandum of understanding signed in February. Under the MOU, the two companies agreed to cooperate throughout the LNG and natural gas value chain of Indonesia.
LNG World News Staff; Image: Tokyo Gas