Jakarta (IOGNews) - State-controlled gas distributor Perusahaan Gas Negara has set aside USD 200 million for capital expenditure this year to help finance projects including liquefied natural gas receiving terminals in North Sumatra and West Java, a company executive said.

PGN director Wahid Sutopo, said the funds would come from the company’s cash. “We have quite a strong cash position,” Wahid said. He did not provide a comparative figure for last year.

The company’s project in West Java is expected to start its operations this year, Wahid said.

The government has ordered three state enterprises — utility company Perusahaan Listrik Negara, oil and gas company Pertamina and PGN — to build an LNG receiving terminal in West Java. The LNG receiving terminal will receive gas from the LNG plant in Bontang, Kalimantan.

“Gas demand from the region is high,” Wahid said.

Director of technology and development at PGN, Jobi Triananda, said the company’s project in Sumatra was still in at the due diligence stage.

The LNG receiving terminal in Sumatra is expected to be completed in 2014 or 2015, Jobi said. He did not provide details of the projects.

The government has appointed Nusantara Regas to build the West Java terminal, which will have a capacity of three million tons per year. Nusantara Regas, a joint venture between Pertamina and PGN, is currently in the planning phase for the East Java and North Sumatra facilities.

The government has ordered PLN to use gas- and coal-powered plants to provide electricity, saying diesel-powered plants were too inefficient.

Indonesia produces enough natural gas to supply the nation’s power producers. Shares in PGN fell 0.9 percent to Rp 3,200 on the Indonesia Stock Exchange on Monday.(JG)