Nusantara Regas threatens to cancel LNG cargo to PLN

By Godang Stompul

PT Nusantara Regas, the owner of West Java FSRU, is threatening to cancel the shipment of third LNG cargo to PT Perusahaan Listrik Negara (PLN), scheduled for July 14, as the state owned electricity firm continues to defer on the payment of the first cargo it delivered in May.

The second LNG cargo arrived last week.

?PLN has yet to make the payment. For the second cargo, we plan to ask for a bridging fund to PT Pertamina and PT Perusahaan Gas Negara (as Nusantara?s shareholders),? Nusantara Director of Finance and Administration Soetikno told petromindo.com.

?But for the third cargo, if PLN still does not want to sign the Gas Purchase Agreement, then we will stop the shipment as we do not have the fund to buy the LNG (from Bontang).?

Nusantara LNG supplies from the Badak LNG terminal in Bontang, East Kalimantan. After regasification process at the West Java FSRU, the gas is transmitted to PLN?s PLTGU Muara Karang combined cycle power plant.

The power plant starts receiving gas from Nusantara in early May, and Nusantara has been asking PLN to make the payment ever since. Soetikno has earlier said that Nusantara has delivered the gas despite that no agreement has been reached on the price of the gas.

?PLN pays little attention on Nusantara?s existence. The third cargo is scheduled for July 14, but now cancellation is an option. Muara Karang power plant may no longer be able to use gas to generate electricity,? Soetikno added.

Asked to comment on the situation, Deputy Minister of Energy and Mineral Resources Rudi Rubiandini refused to elaborate, only saying that ?it was a business-to-business issue which should not have happened.?

Editing by Dadan Wijaksana