Nusantara Regas finds it hard to get new LNG supplies

By Godang Sitompul

PT Nusantara Regas, the operator of Regas Satu FSRU in Jakarta Bay, is facing difficulties to secure new LNG supplies for the LNG floating terminal due to among others the high price of the fuel.

Many LNG producers have signed long term sales contracts with buyers that they have limited spare capacity for new buyers. Furthermore, the fuel is now very expensive, according to the company which is a joint venture between PT Pertamina and PT Perusahaan Gas Negara (PGN).

?Actually, there are many who offer the fuel to us, but there isn?t yet any definitive result. They mostly already have contracts with other buyers. Furthermore, they offer prices which are higher than the current one,? the company?s Administration and Finance Director Soetikno told Petromindo.com.

Meanwhile, the company?s President Director Hendra Jaya said the company is ready to buy LNG from any producer here and abroad as long as the producers meet the technical and commercial requirements set by the company.

?We want our FSRU to operate at full capacity. Actually, we have LNG producers here in our country, but it depends on BPMIGAS whether we can get new supplies from them,? Hendra said.

Separately, Pertamina?s Gas Director Hari Karyuliarto confirmed that LNG in the international market is now very expensive. ?We?d better buy the fuel from the local producers,? he said.

Regas Satu FSRU has a capacity of 3.5 million tons per annum (MTPA), but only 1.5 MTPA of the capacity is now being utilized. Under the contract with Total and INPEX, the FSRU will receive a total of 11.75 Mt of LNG from the Badak LNG plant in Bontang, East Kalimantan over a contractual period of 2012-2022

Editing by Johannes Simbolon