Nusantara Regas to use PHE ONWJ gas pipeline

PT Nusantara Regas plans to use the gas pipeline of PT Pertamina Hulu Energi Offshore North West Java (ONWJ) to transport gas from a floating storage and regasification unit (FSRU) in West Java to PLTU Tanjung Priok combined cycle power plant, Bisnis Indonesia reported on Tuesday.

General Manager and Executive Vice president of PHE ONWJ Ignatius Tenny Wibowo said in Jakarta on Monday that by using the ONWJ gas pipeline, Nusantara did not need to build a new gas pipeline.

?We will share our pipelines so we don?t need to build new ones. Nusantara will build a pipeline to distribute gas from the sea, and it will then be linked to our facilities for distribution to Tanjung Priok,? he said.

The use of the ONWJ pipeline will be based on a cost sharing mechanism, he said, adding that the cost would be based on the volume of gas being transported through the pipeline.

The West Java FSRU unit, which will have a receiving capacity of 3 million tons of LNG a year or equvalent to 400 million standard cubic feet per day (MMSCFD), will provide gas supply to PLTU Muara Karang dan PLTU Tanjung Priok combined cycle power plants.

The FSRU, however, has secured LNG supply of only about 1.5 million tons a year or 200 MMSCFD from the LNG Bontang plant in East Kalimantan. At present, Nusantara Regas is seeking additional supply from other LNG producers. (*)