Govt yet to agree on cost of FSRU Belawan

The government is yet to agree on the cost to develop the floating storage and regasification unit (FSRU) Belawan, which will be owned and operated by PT Perusahaan Gas Negara Tbk (PGN), Director General for Oil and Gas, Evita H. Legowo said.

?The cost of FSRU Belawan will hopefully be settled by the end of this year. I think it (the price offered by the contractor) is too ambitious,? Evita said.

Earlier, PGN and H?egh LNG Holdings Ltd of Norway has signed Heads of Agreement (HoA) for the provision of a floating storage and regasification unit (FSRU) offshore Belawan, near the city of Medan in North Sumatera.

The HoA is based on the use of H?egh LNG's first FSRU newbuilding due for delivery at the end of 2013 and under construction at Hyundai Heavy Industries in Korea.

Evita added the price of gas which is planned to be taken from Tangguh field in Papua with an amount of 140 MMSCFD is yet to be agreed upon.

Meanwhile, Wachid Sutopo, Director for Planning Investment and Risk Management of PGN, said PGN and Hoegh as well as PT Rekayasa Industri will sign detailed agreement for the construction of the FSRU Belawan in January next year.

He said Hoegh has agreed that the FSRU will carry Indonesian flag in line with the cabotage policy. (bernard)