Lampung FSRU supplies gas to 14 industries

State-owned gas distribution company PT Perusahaan Gas Negara Tbk (PGN) has signed a gas sale and purchase agreement (GSA) with 14 industries which will be supplied with gas from PGN?s floating storage and re-gasification unit (FSRU) in Lampung.

The commitment to supply the gas will be started in August 2014 at a total of 1.3 mmscfd. The 14 companies are PT Coca Cola Amatil Indonesia, PT Garuda Food Putra Prima, PT Nestle Indonesia, Novotel Lampung, PT Bumi Menara Internusa, PT Tunas Baru Lampung, PT Gizi Utama, PT Japfa Comfeed, PT Philips Seafood, Hotel Sahid Bandar Lampung, PT LDC Indonesia, PT Aman Jaya Perdana, Hotel Aston Lampung, and Golden Dragon.

PGN Technology and Development Director Djoko Saputro said in a press release issued by the company on Wednesday that the gas supply will increase according to the need of local industries.

He said that the so far his company has allocated a total of 80 mmscfd for Lampung. It can be increased further based on the need of local customers and the gas supply received by FSRU Lampung, which has a total capacity of 240 mmscfd.

The FSRU Lampung has secured a gas supply from the liquefied natural gas (LNG) plant in Tangguh, Papua.This year, iIt has secured 5 cargoes from Tangguh, and next year it will get 14 cargoes.

According to Djoko Saputro, as the gas is cheaper and environmentally friendly, it will help the local industries to improve their competitiveness on the local and international markets.

?We would like to thank all of stakeholders for their roles in increasing the use of gas in Lampung. PGN is committed to facilitating the conversion of energy from the oil fuel to gas. The gas will give more value added to our industries,? said Djoko Saputro after meeting with Lampung Governor Ridho Ficardo, on Tuesday afternoon, 24th June 2014.

Djoko Saputro also said that PGN is currently finalizing a negotiation with state utility PT PLN to supply gas at a total of 45 mmscfd to three power plants in Lampung. The three power plants are Sri Bawono, Sutami and Tarahan.

He said that PGN will also supply gas from the FSRU to small and medium industries, and households in Lampung. The company is developing distribution pipelines from the FSRU to areas of the customers. So far it has finalized 90 kilometer pipelines.

Djoko noted that PGN will also expand gas supply from the FRSU to other areas outside Lampung, including Western Java and Southern Sumatra.

Editing by Benget Besalicto ST