Pertamina to continue with construction of C. Java FSRU

The government has asked state-owned oil and gas firm PT Pertamina to resume the construction of the floating storage and regasificaiton unit (FSRU) in Central Java, with the outlook that the facility can be operated by 2015, Investor Daily reported on Wednesday.

?We have decided to resume the construction of the Central Java FSRU,? said Director General of Oil and Gas Evita Legowo.

Director of Gas at Pertamina, Hari Karyuliarto confirmed that his company has been asked by the government to resume the construction of the FSRU. ?But we have also asked the government to secure the necessary gas supply. If the government has asked us to resume the construction, then they have already prepared the gas (source),? he said.

Evita said that one possible gas source for the Central Java FSRU is the LNG from the Tangguh LNG facility in Papua. ?There?s possibility for the gas to come from Tangguh, part of Sempra diversion,? Evita said.

Hari added that import could also be an alternative, although acknowledging that currently the price of LNG in the international market is more expensive than the price at home.(*)