Pertagas appeals for govt?s approval of Central Java FSRU
Thursday, June 7 2012 - 02:33 AM WIB
PT Pertamina Gas (Pertagas), a subsidiary of state oil and gas company PT Pertamina has made an appeal through the directorate general of oil and gas to get the approval for the development of the floating storage and re-gasification unit (FSRU) in Central Java, following the government?s decision recently to cancel the project.
The government, through the ministry of state enterprises, had cancelled the Central Java FSRU as it was considered as not economically feasible. State Entreprises Minister Dahlan Iskan said that instead he wanted the company to prioritize the development of a gas pipeline that would connect the main Java island.
"Now, we?ve made an appeal to Oil and Gas Director General Evita H.Legowo so that she?s willing to discuss about the gas balance in Indonesia. If the gas balance shows that demand is bigger than supply, then we could continue with the development of the Central Java FSRU,? Pertagas President Director Gunung Sardjono Hadi told Petromindo.com on Wednesday.
He said that if the FSRU project is approved and then developed, it would meet the gas need in Central Java. ?As a matter of fact, currently we?ve received more than 10 letters of intent, asking for gas supply, from the industries operating in the province,? he said.
According to him, based on his company?s plan, Pertagas would own and operate the FSRU, which would have a capacity to process 1.5-3 mtpa of LNG to be distributed in Central and East Java region.
The planned Semarang FSRU, if approved by the government, would be the third in Indonesia after the West Java FSRU and Lampung FSRU.
Editing by Benget Besalicto Tnb.