Pertamina secures buyers for Central Java FSRU gas
Wednesday, August 29 2012 - 07:21 AM WIB
PT Pertagas, a subsidiary of state owned oil and gas firm PT Pertamina, said on Wednesday it had secured buyers for the gas to be supplied from the FSRU it plans to build in Central Java.
The firm said it had signed Letter of Intent (LoI) with 10 potential buyers in the province, according to Pertagas? President Director Gunung Sardjono.
?Besides, a total of 40 mmscfd of the gas will be absorbed by the Cilacap refinery (owned by Pertamina), which will switch from oil fuel to gas for fuel,? he told Petromindo.com.
Gunung said Pertagas will finalize current negotiations with South Korean firm SK Group on cooperation to distribute the gas through pipelines in Central Java and East Java.
He made the statement following the announcement by Director General of Oil and Gas Evita H. Legowo earlier on Tuesday that the government had given a green light for the firm to resume the project. The approval marked a change of mind on the part of the government which asked for the cancellation of the project several months ago, saying it was not feasible.
Gunung noted that with the government having a go-ahead to the project and Pertagas having secured buyers, the firm now needs to secure LNG supply for the FSRU. The firm expects the LNG supply to come from Tangguh LNG plant in West Papua.
?Pertagas will soon prepare a business scheme once the government allocates some of Tangguh LNG to us,? he said.
Editing by Johannes Simbolon