Pertagas to turn LNG into fuel for land transportation

By Godang Sitompul

PT Pertamina Gas (Pertagas) plans to purchase LNG from Floating Storage Regasification Unit (FSRU) owned by PT Nusantara Regas to be processed into fuel for land transportation.

President Director of Pertagas, Gunung Sardjono, said that the LNG will undergo a regasification process to be turned into fuel, which will be supplied to heavy equipment at PT Indominco, a subsidiary of coal mining giant PT Indo Mega Tambang Raya, in East Kalimantan, as a pilot project.

?Thank God, the HOA with Indominco has been signed before the Christmas Holiday last year. We?re currently preparing the sales and purchase agreement draft with Nusantara Regas,? he told Petromnido.com Wednesday. ?We?re hoping to get the LNG allocation from the government for a full scale run of the project once the pilot has been successful.?

?The implementation (of the project) is projected to start in 2014 with initial volume of 174 m3 per day, which will continue to gradually increase,? he said, while adding that in the future, another source of LNG for the project include allocation from the Mahakam Block.

Separately, President Director of Nusantara Regas, Hendra Jaya, confirmed that his company has requested for government permit to allocate LNG for the Pertagas project without disrupting LNG supply commitment to state-owned electricity firm PLN.

?This program is expected to become pioneer in the commercial use of LNG for land transportation,? Hendra told Petromnido.com.

Editing by Reiner Simanjuntak