Pertamina to build three new regasification facilities

In a bid to expand crucial gas infrastructure facilities to support gas distribution to domestic customers, state-owned oil and gas firm PT Pertamina plans to build three new regasification units, reports said on Tuesday.

Pertamina Senior Vice President for Gas and Power, Salis Aprilian was quoted by Bisnis Indonesia as saying that the company planned to develop two floating storage and regasification units (FSRUs) in Cilamaya (West Java Province) and Cilacap (Central Java), and a land-based regasification unit in Bojanegara (Banten).

He said that the planned Bojanegara regasification facility will have a capacity of 400-500 mmscfd, with estimated investment requirement of US$500 million. No further details were provided by the paper.

Meanwhile, Salis was quoted by The Jakarta Post as saying that the Cilamaya FSRU is already in the final investment decision (FID) stage. He did not provide project time line nor the investment estimate.

Regarding the Cilacap FSRU project, the paper quoted Pertamina Director for Gas Hari Karyuliarto as saying that the Cilacap infrastructure would likely include a mini FSRU with a capacity of around 100 million standard cubic feet per day (mmsfcd).

Investment for the Cilacap FSRU will be between $60 million and $100 million.

Construction of the Cilacap FSRU is expected to kick off at the end of next year, according to Salis, and is expected to be in operation by mid-2017.

He added that the company was expecting gas supply from the country?s main gas producing areas, such as Tangguh in Papua, Bontang in Kalimantan and the Indonesia Deepwater Development (IDD) in the Makassar Strait.

Indonesia is estimated to have significant gas resources. However, due to poor infrastructure, most of the gas is sold overseas. (*)