Indonesia, once the world’s leading exporter of LNG until being eclipsed by Qatar in 2006, now has plans to use its export facilities to supply re-gasification terminals on the islands of Sumatra and Java in order to satisfy rising domestic demand.

Indonesian gas distributor, PT Perusahaan Gas Negara (PGN), revealed that it plans to build three LNG receiving terminals on the islands at a combined cost of $1.67bn, building re-gasification terminals on both the east and west sides of the Island of Java and the third terminal being constructed in the northern Sumatra town of Medan.

The first project would be built on the west side of Java at an estimated cost of $650m with the terminal constructed in three phases, achieving its first output of 200 million cubic feet per day (MMcfd) by 2012.

The second LNG receiving terminal is to be built in the East Java province at an estimated cost of $574m and constructed in two stages, with the first stage sending out 200 MMcfd by 2011.

Constructed at an estimated cost of $446m, the LNG receiving terminal in North Sumatra's town of Medan is anticipated to have an output capacity of 200 MMcfd of gas by 2011.

PGN plans to buy gas from the Bontang LNG project in East Kalimantan and West Papua's Tangguh LNG project.