State-owned Indonesian oil company, PT Pertamina, has inked a deal to operate a floating LNG terminal in the waters off West Java.

According to the Jakarta Post, the deal with gas distributor PT PGN will call for the construction of a terminal slated for the latter part of this year.

Under the deal, Pertamina will command 60 percent of the shares with PGN having the rest. Accordingly, commensurate with the share ownership, Pertamina will assume most of the key positions in the new joint-venture set-up.

“The project will complement Pertamina’s LNG chain which has been in place for more than 30 years,” the company’s President-Director Karen Agustiawan was qyoted as saying.

The joint venture will receive 11.75 million tonnes gas supplies from East Kalimantan over a period of eleven years.

Sammy Lee