Nusantara Regas has yet to get permits to build FSRU

PT Nusantara Regas, a joint venture between state owned companies PT Perusahaan Gas Negara (PGN) and PT Pertamina, has yet to secure permits from the Ministry of Transportation and the Jakarta Provincial Administration to build a LNG floating terminal at the Jakarta Bay.

 

Nusantara Regas?s president director Djohardi Angga Kusumah told Petromindo.com via phone on Wednesday that the firm filed an application for permit with the ministry in August to build a ?special port? at the bay where the firm will build the so-called Floating Storage and Regasification Unit (FSRU).

 

But the ministry said they would not process the application until after they got a recommendation from the Jakarta Administration, Djohardi said.

 

Earlier, Director General of Sea Transportation at the ministry Suwandi Saputro said in order to build the FSRU, the firm must first apply for a permit to build ?a special port? in which the firm will become the operator.

 

He said his office would issue the permit as long as the development of the LNG terminal would not pose danger to shipment traffic at the Tanjung Priok and Sunda Kelapa ports, which are located close to the Jakarta Bay.

 

If everything runs well, Suwandi is optimistic that his office would issue the permit as soon as possible that the development of the FSRU can start soon and the facilities could start operation in the fourth quarter of 2011 as scheduled.

 

Nusantara Regas has signed the heads of agreement (HoA) to buy gas from the Mahakam block in East Kalimantan owned by French firm Total Indonesie and Japanese firm Inpex. The gas will be turned into LNG before being shipped to the Jakarta Bay FSRU, where it will be turned into gas before being channeled to the Muara Karang power plant in North Jakarta owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN).

 

Total and Inpex agree to supply Nusantara Regas a total of 11.75 million tons over a period of 10 years starting in 2012.

 

Nusantara Regas is 40 percent owned by gas distributor PGN and 60 percent by oil and gas firm Pertamina.

 

Separately, PLN?s president director Dahlan Iskan said in the beginning the Muara Karang power plant will get 100 MMSCFD of gas from the Jakarta Bay FSRU and the volume will be gradually ramped up to 400 MMSCFD.

 

PLN will pay US$10 per MMBTU at the oil reference price of $70 per barrel, Dahlan said PLN expects to save fuel costs by Rp 2 trillion per year as a result of using gas from the FSRU. (Godang)