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March 6, 2008 |
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PERUSAHAAN GAS: To Build 3 LNG Receiving Terminals for US1.67BB PT Perusahaan Gas Negara is planning to build three liquified natural gas (LNG) receiving terminals at a combined cost of US1.67 billion, Antara News reports, citing Company President Sutikno. According to the report, the company will build one LNG receiving terminal in West and East Java, and in North Sumatra's town of Medan, which will cost approximately US$650 million, US574 million, and US446 million, respectively. The West Java terminal, the report relates, will be build in three stages -- the first stage with a capacity to store 200 million standard cubic feet per day of gas is expected to be completed in 2012. The second stage with the same capacity is expected to be completed in 2018, while the third stage with a capacity to store 400 mmscfd is expected to be completed in 2024, the same report notes. Antara reports that the West terminal will be be constructed in two stages -- the first stage with a capacity to store 200 mmscfd of gas is expected to be completed in 2011 and the second stage with a capacity of 200 mmscfd would be finalized in 2017. Moreover, the last terminal in North Sumatra's town of Medan will have a capacity to store 200 mmscfd of gas, and is expected to start commercial operations in 2011, pending the completion of a gas pipeline linking the towns Duri and Medan, the report says. Mr. Sutikno told the news agency that the company plans to buy gas from the Bontang LNG project in East Kalimantan as well as West Papua's Tangguh LNG project, which will be piped to the above mentioned LNG receiving terminals. Sutikno also said PGN expects its gas sales volume to hit 716 mmscfd this year compared to 413 mmscfd at the end of last year, Antara relates. Antara recounts that PGN recently secured contracts to purchase gas from 15 producers, including Pertamina, ConocoPhilips, Lapindo Brantas, BP Muara Karang, Kodeco, Santos Ltd and Husky Oil, with a total volume of 1,063.3 mmscfd. Mr. Sutikno expects the new contracts to begin supplying gas from 2010, the same reports adds. About Perusahaan Gas Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk -- http://www.pgn.co.id/ -- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or- pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. The Troubled Company Reporter-Asia Pacific reported on Dec. 26, 2007, that Standard & Poor's Ratings Services has raised its corporate credit ratings on PT Perusahaan Gas Negara (Persero) Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable. At the same time, Standard & Poor's has raised the rating on the senior unsecured debt issued by PGN Euro Finance 2003 Ltd. (guaranteed by PGN) to 'BB-' from 'B+'. On Jan. 18, 2007, Moody's Investors Service affirmed the Ba2 corporate family rating of PT Perusahaan Gas Negara (Persero) Tbk. At the same time, Moody's affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed by PGN. The ratings outlook is stable. This affirmation followed the recent announcement of a delay in the South Sumatera West Java gas commercialization. On June 28, 2006, the TCR-AP stated that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. |
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