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Jakarta Post

PGN to start LNG processing at Tanjung Perak Port this year

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

Jakarta   /   Mon, October 21, 2019   /   04:49 pm
PGN to start LNG processing at Tanjung Perak Port this year Tied up: Workers stand on the wharf of a liquefied natural gas (LNG) terminal in Benoa Harbor in Denpasar, Bali, on Monday. The first LNG terminal for floating storage units consisting of two vessels is being operated near a diesel and gas-fired plant (PLTDG), which was developed to supply 200 megawatts of electricity to outer islands. (JP/Zul Trio Anggono)

State-owned gas company PGN is set to begin operations at its liquified natural gas (LNG) processing terminal at Tanjung Perak Port in Surabaya, East Java, this year.

The company said in a statement issued on Thursday that the Teluk Lamong terminal would have, in the first phase, a processing capacity of 40 million standard cubic feet per day (mmscfd), most of which would be used to regasify LNG into a suitable fuel for domestic and industrial use.

PGN corporate secretary Rachmat Hutama said the terminal was “very important to meet gas demand in East Java” because it enabled the province to use supplies from West Java and Central Java.

“The LNG terminal is also a measure to anticipate any problems arising with the natural gas supply in East Java,” he said. 

The terminal, which is being built in cooperation with state-owned port operator Pelindo III, will have a capacity of 180 mmscfd once PGN completes the third and final phase of development by 2023, by which time the facility will also have a landed gas storage system and gas container refilling station.

The company plans to install a landed gas storage system with a capacity of 50 cubic meters (cbm) that can be expanded to 180 cbm if needed and a gas container filling station to facilitate transporting fuel to eastern Indonesia in the absence of end user gas pipelines.