REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Chamber of Commerce and Industry (Kadin) announced that Liquefied Natural Gas (LNG) receiving terminals will be constructed in the 34 provinces of the country.

"It is to support the regional economy through the equitable distribution of industrial development and should be done gradually over the next five years," Kadin Vice Chairman for Disadvantaged Regions Natsir Mansyur said here on Tuesday (14/1).

According to him, the project stemmed from the increasing domestic demand for LNG, which is now 10 million metric tons, or half the amount exported.

An LNG receiving terminal is a facility to convert the liquefied form back to natural gas through the process of regasification.

Mansyur estimates that the construction of the LNG receiving terminals in the 34 provinces will include an investment of some US$8 to 10 billion, with the classification adjusted according to the geographical conditions of each region.

A small terminal has LNG storage tanks with a capacity of 20,000 to 50,000 cubic meters, while the large ones have that of more than 160,000 cubic meters.

The initiative was welcomed by the Ministry of Energy and Mineral Resources that was ready to permit the allocation of supply, storage and trade of oil and gas.

"The revenue assurance of the upstream and downstream industries should be noticed," Director of the Oil and Gas Development Program of the ministry Agus Cahyono Adi emphasized.

In the last eight years, Indonesia has been able to allocate 50 percent of LNG towards domestic needs and export the rest, he pointed out.

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