Indonesian state-owned Pertamina ditched its plans to build the country’s second liquefied natural gas (LNG) import terminal.
The company’s chief executive officer Nicke Widyawati told reporters that the decision has been made no to proceed with the project as it is not yet feasible, Reuters reports.
The project, proposed for Bojonegara, near Jakarta, was valued at $800 million would have a 4 million ton per year production capacity. However, despite the projected increase in demand post-2020, the slow development of the gas infrastructure has seen the consumers turn to cheap coal.
This has seen the gas demand decreasing Widyawati said, however, if the demand of gas for power generation jumps back, the company could review its decision.
Pertamina was developing the project in joint venture with Kalla Group’s unit Bumi Sarana Migas, with financing provided by Japan Bank for International Cooperation (JBIC), and the design of the facility was completed by Tokyo Gas’ engineering unit.
LNG World News Staff