Norway?s Hoegh LNG interested in Central Java FSRU project

Hoegh LNG, a liquefied natural gas (LNG) company of Norway, said it is interested to develop the floating storage and regasification unit (FSRU) project in Central Java to be offered by the government.

 

?They (Hoegh LNG) hope to win in the bidding for the (FSRU) Central Java,? Deputy Energy and Mineral Resources Minister Widjajono Partowidagdo was quoted by Investor Daily as saying.

 

Widjajono made the comment after executives of Hoegh HG met with Energy and Mineral Resources Minister Jero Wacik.

 

The FSRU Central Java will have a storage capacity of 200 million cubic feet per day (mmscfd). The project is under bidding process. The government expects the FSRU to commence operation in 2013.

 

Apart from Hoegh, Golar LNG of Norway has also expressed its interest in developing the Central Java FSRU project.

 

Hoegh LNG has earlier been declared as preferred bidder to develop the FSRU Belawan in North Sumatera. The company teams up with PT Rekayasa Industri in the construction of the FSRU project. However, it is not clear yet when the construction can actually commence as there still pending issues related to source of the LNG supply.

 

The cost needed to develop the FSRU Belawan is estimated to reach US$200 million. The construction of the project is expected to begin at end 2012, delayed from earlier plan of end 2011.

 

The Belawan FSRU follows the Jakarta Bay FSRU unit which is being constructed by Golar LNG of Norway.

 

Director General for Oil and Gas, Evita Legowo, has said that she expects the FSRU West Java, the first FSRU in Indonesia, to commence operation in April 2012.

 

The West Java FSRU, is operated by PT Nusantara Regas (Regas), a joint venture of state oil and gas firm PT. Pertamina (Persero) and state-owned gas distributor PT Perusahaan Gas Negara (Persero) Tbk (PGN). The FSRU will have capacity of 3 million tonnes per year of LNG or equal to 400 MMSCFD.

 

The gas will be supplied to the Muara Karang and Tanjung Priok power plants in Jakarta, owned by state owned electricity firm PT PLN. (roffie/romel)