Govt optimistic Lampung FSRU to be completed this year

The government is optimistic that the construction of a floating storage and regasification unit (FSRU) to be located in Lampung can be completed this year.

Director General of Oil and Gas A. Edy Hermantoro said in a statement over the weekend that the gas supply for the FSRU, which has a capacity of 170 mmscfd, will come from the Tangguh project in Papua.

Edy said that the FSRU in Lampung will help supply gas demand from consumers in Lampung and western part of Java.

With investment of US$250-300 million, the FSRU is being developed by state-controled gas distribution firm PGN in cooperation with state-owned engineering firm PT Rekayasa Industri, and Norway?s Hoegh LNG at Hyundai Heavy Industries facility in South Korea. PGN said in December of last year that the FSRU vessel is expected to arrive from South Korea in June of 2014.

This is the second FSRU built by PGN. The company, in cooperation with state-owned oil and gas firm Pertamina through subsidiary PT Nusantara Regas, has earlier developed the West Java FSRU, which started operation in 2012.

Editing by Reiner Simanjuntak