Lampung FSRU gets 1st LNG from Tangguh

Upstream oil and gas authority SKK Migas has approved the Master FOB of the liquefied natural gas (LNG) sale and purchase agreement and confirmation notice between Tangguh LNG and PT PGN LNG Indonesia.

Based on the agreement, the Floating Storage and Regasification Unit (FSRU) Lampung owned by PT PGN will get one LNG cargo from Tangguh.

?This is a commitment of upstream industry to meet the domestic need of gas. In 2014, the allocation of gas for domestic market reached 54 per cent of the total production,? SKK Migas Acting Chairman J. Widjonarko said in a press release issued on Sunday.

The one cargo will be the first of 5 cargos planned to be supplied to the FSRU in 2014. The first cargo will have a total volume of 3,320,000 mmbtu which will be used for commissioning of Lampung FSRU.

?From Lampung FSRU, the gas will be supplied to power plants and industries in West Java through the South Sumatera West Java (SSWJ) pipeline. Later, the gas will also be used for industries in Sumatera,? said Widjonarko.

The one cargo is the second shipping for domestic allocation from Tangguh LNG plant. Previously, LNG from Tangguh had been sent to supply the gas need of PT Pupuk Iskandar Muda (PIM) in Aceh at a total of two cargos from the planned 4 cargos, in 2014.

Widjonarko said that next year (2015), the cargos to be sent to the FSRU will be 14 cargos.

?SKK Migas will continue to maximize the domestic allocation of gas, particularly for power plants,? he said.

Editing by Benget Besalicto ST