TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
PGN in talks on LNG supply for new vessel
State-owned gas distributor PT Perusahaan Gas Negara (PGN) is expecting to seal an agreement with BP Berau Limited on the supply of liquefied natural gas (LNG) from the latterâs Tangguh LNG operation in West Papua
Change Size
S
tate-owned gas distributor PT Perusahaan Gas Negara (PGN) is expecting to seal an agreement with BP Berau Limited on the supply of liquefied natural gas (LNG) from the latter's Tangguh LNG operation in West Papua.
PGN said it hoped the deal would be finalized before the company started operating its new floating storage and regasification unit (FSRU) in July.
PGN investment planning director Wahid Sutopo said on Wednesday that the company was still discussing the LNG supply to feed its FSRU vessel in Lampung.
'The full operation of the floating storage is expected to commence in the second half. By that time, we must have the LNG,' Wahid said.
The company's FSRU vessel in Lampung is designed to have a storage capacity of 170,000 cubic meters of LNG and a capacity to receive 2 million tons of LNG per year for regasification.
The FSRU development costs around US$300 million.
Earlier this month, PGN said that construction of the FSRU vessel was complete and that it had departed from Ulsan, South Korea, where it was built. The vessel is expected to arrive in Lampung in May.
SKKMigas commercialization control deputy Widhyawan Prawiraatmaja said earlier that as many as 5 cargoes of LNG produced at the Tangguh plant had been allocated for the new FSRU vessel. However, a gas selling agreement has yet to be signed.
Gas stored at the FSRU will be delivered to numerous clients, including to supply some power plants, industrial, small and medium enterprises as well as households in Lampung and South Sumatra.
It will also help the company supply some of its clients in West Java, Banten and Jakarta.
The FSRU in Lampung is PGN's second facility after the West Java FSRU, which began operation in 2012. The West Java FSRU is operated by PT Nusantara Regas ' 40 percent of which is owned by PGN while the remaining is held by state-owned oil and gas firm PT Pertamina.
Apart from the development of the vessel, PGN is also working on a 100-kilometer distribution pipe network in Lampung. As of the end of March, the development of the pipeline had reached 90 kilometers, president director Hendi Prio Santoso said.
The government is expecting to see higher utilization of gas in the country, whose gas products, particularly LNG, have been exported for years.
