Pertamina hopes to get supply from Bontang LNG plant
Wednesday, December 14 2011 - 02:23 AM WIB
The company?s senior vice president for gas, Nanang Untung reported that Pertamina hoped that the FSRU would be able to receive gas supply from domestic LNG plants following the increased price of LNG in the global market.
Pertamina expected the Bontang plant to provide 1.5 million tons per annum (mtpa), or half of the receiving terminal?s full capacity, he explained. He added that the 1.5 mtpa was the minimum amount that should be tilled to allow the terminal to operate economically.
?We?ll find the remaining 1.5 mtpa. Now, the most important thing is certainty of the gas supply so that we can kick off the development project. We hope that this year we can get certainty over the gas supply,? said Nanang.
The Central Java FSRU is scheduled to begin commercial operations in the first quarter of 2013.
In the first phase, a 250-kilometer pipeline will be set up connecting Semarang, Central Java and Gresik, East Java. The next phase will connect Cirebon with Muara Tawar.
The pipelines will provide enough supply for all of PLN?s gas fired power plants and industries in northern Java.
Pertamina, teaming up with state gas distributor PT PGN, has also started the development of the same receiving terminal in Jakarta Bay.
The terminal is expected to begin commercial operations in March 2012. The terminal will also receive LNG from the Bontang plant. The first delivery of gas is scheduled to come in January.
PGN has also revealed a plan to build a LNG receiving terminal in the Sunda Strait to supply gas to state-owned steel producer PT Krakatau Steel (KS).
PGN president director Hendi Priyo Santoso said the FSRU would have a total capacity of around 3 million tons per year, or equal to 400 million standard cubic feet per day (mmscfd), similar to the West Java receiving terminal currently under construction.(*)