Dahlan orders C. Java FSRU cancellation

By Godang Sitompul

State enterprise minister Dahlan Iskan has ordered state oil, gas company PT Pertamina (Persero) to cancel the plan to build an LNG floating terminal and receiving unit (FSRU) in Central Java and asked Pertamina instead to build a gas pipeline that connect Java.

?FSRU in Central Java is not necessary,? Dahlan said through text message.

Pertagas President Gunung Sardjono said he was not aware about the cancellation order. Pertagas is a wholly owned subsidiary of Pertamina that was assigned to build the Central Java FSRU.

Gunung Sardjono in an interview with Petromindo.Com last year said that Pertagas will own and operate the FSRU, which will have capacity to process 1.5-3 MTPA of LNG to be distributed in Central and East Java region.

Editing by Alexander Ginting