Pertamina to build small-scale LNG plant on Java

Indonesian state-owned oil and gas company Pertamina plans to build a small-scale LNG regasification unit at its Cilacap oil refinery, Java.

Pertamina will provide integrated LNG infrastructure to support its refinery business development through its units Subholding Gas, Subholding Kilang, and Subholding Shipping, and Badak LNG, the operator of its Bontang LNG export terminal.

The project is to supply gas to the Cilacap refinery for 20 years, gradually increasing in volume.

The LNG infrastructure is estimated to require an investment of $151.7 million.

The Cilacap refinery is one of the largest oil refineries in Indonesia, and one of 7 processing units in Indonesia. It has a total capacity to produce 348,000 barrels a day.

Pertamina expects the project to help develop the retail LNG market in southern central Java and generate savings of $58.5 million a year by utilising gas.