Govt to ask PGN to buy special LNG vessel to solve gas deficit

The government will ask state owned gas transmission and distribution company PT Perusahaan Gas Negara (PGN) to provide an LNG processing and storage vessel in order to secure gas supplies to North Sumatra, Kontan daily reported on Saturday.

 

The vessel which is better known in the industry as shuttle storage receiving vessel (SSRV), is a good alternative to solve gas shortage problem now occuring in the province, the paper quoted Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Luluk Sumiarso as saying on Friday.

 

Luluk said that PGN agreed on the proposal, it would take only eight months for the company to procure the vessel.

 

North Sumatra is experiencing a gas deficit amounting to 400 million cubic feet per day (MMCFD) and the deficit is expected to get worse in the coming years unless there is an effective measure to solve the problem, according to Luluk. “In view of the fact, a breakthrough is needed,” said Luluk in Jakarta.

 

The government will let PGN decide whether to buy or rent the vessel, according to Luluk. (*)