Nusantara Regas seeking additional gas supply from Tangguh

PT Nusantara Regas, a joint venture between state oil and gas PT Pertamina and gas distributor PT PGN, is seeking additional LNG supply from different sources for its West Java Floating Storage and Re-gasification Unit (FSRU) in the Jakarta Bay, Kontan daily reported on Friday.

The company?s President Director Hendra Jaya said in Jakarta on Thursday that Nusantara Regas had secured a contract of about 1.5 million metric tons per year from Bontang LNG Plant. ?But it is still not enough because the FSRU?s capacity is 3 million tons,? he said.

To fill the shortage, Nusantara Regas is seeking additional supplies from other sources such as the Tangguh LNG plant or buying from international markets such as the United States.

Hendra said that Nusantara actually wanted to get the gas supply initially allocated by BP to its buyer, Sempra Energy. ?But we can only get it for short-term contract because BP has a long-term contract with Sempra,? he said.

Due to oversupply of gas in the US, Sempra has agreed to divert the gas supply it is supposed to buy to other buyers. Such a deal is allowed under the gas contract it signed with BP, the operator of Tangguh plant.

The other alternative, he said, Nusantara hoped to get gas supply from the third LNG train to be built by BP in Tangguh, West Papua, and other LNG plants, which will be built in the country. But for the short-term need, Nusantara is considering the possibility of importing the LNG from the US.

Hendra said that the price of LNG in the US had sharply declined due to the increase in the supply of shale gas.

The West Java FSRU began its trial operation in May with gas volume of about 100 million standard cubic feet per day (mmscfd). The gas volume will be increased to 200 mmscfd at the end of July. Gas from the FSRU is now supplied to PLN?s Muara Karang combined cycle power plant.(*)