JAKARTA. PT Perusahaan Gas Negara (Persero) Tbk (PGAS) or PGN has raised its capital expenditure (capex) budget in 2020 to support the development of the Teluk Lamong LNG Terminal in East Java.
According to PGN CEO Gigih Prakoso Soewarto, the Teluk Lamong LNG Terminal will help the company reach new areas in East Java. The terminal has a capacity of 40 billion British thermal units (BBUTDs) with a LNG filling capacity of 10 BBUTDs, and is targeted to commence operation in June this year.
PGN has budgeted US$ 500 million to 700 million in capex this year, having budgeted only US$ 225 million in 2019.
However, PGN has not decided on its capex financing sources. The management is still reviewing a number of profitable options, particularly those that can support the company's performance organically. (KR/MS)