imagePARIS: French energy group GDF Suez has signed a draft agreement to develop a gas processing plant in northern Java, Indonesia, as part of a long-term strategic partnership the firm said on Monday.

The on-shore methane terminal will convert liquefied natural gas back into gas, GDF Suez said, and the agreement for a feasibility study is with Indonesian company PerusahaanGas Negara (PGN).

The project marks a new step in GDF Suez's development in Indonesia which has a fast-growing economy in the South East Asia region.

"This new agreement represents a significant milestone in developing gas infrastructure projects in Indonesia as part of a long-term strategic partnership with PGN," executive vice president Jean-Claude Depail said in a statement.

The partnership was a new example "of the group's development strategy for international gas infrastructure that will facilitate access to energy supplies for countries experiencing rapid growth," he said.

In February, the two companies signed another agreement for the training in the technical processes of handling gas for staff of GPN, which is controlled by the Indonesian government and operates nearly 6,000 kilometres (3,750 miles) of gas pipeline.

GDF Suez already has a foothold in exploration for, and processing of, natural gas in Indonesia through an off-shore project at Jangkrik, in partnership with Italian group Eni.

It is also the main independent producer of electricity in Indonesia.

Last week GDF Suez said it was reconsidering a scheme for a floating pant to liquefy gas off northern Australia, looking instead at the possibility of building an under-sea pipeline to Darwin.

The off-shore Australian fields are intended to boost the drive by GDF Suez to supply gas to Asian markets.

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