PGN allocated 140 mmscfd of LNG from Tangguh

The Ministry of Energy and Mineral Resources has assured that state owned gas distribution firm PT Perusahaan Gas Negara (PGN) will obtain 140 mmscfd of LNG/gas from the Tangguh refinery in Papua owned by BP Indonesia.

The LNG will be used for the floating storage and regasification unit (FSRU) in Belawan, North Sumatra, to be operated by PGN. ?It has been fixed,? said Director General of Oil and Gas Evita Legowo on Tuesday.

PGN and BP Indonesia however have yet to reach an agreement on price.

The Belawan FSRU is currently being developed to help bolster gas supply at home. It will have a 200 mmcfd capacity. The facility is expected to be operational in 2012 to supply the gas need of state utility PLN and industries in North Sumatra.

Apart from FSRU Belawan, two more FSRUs will be built, namely FSRU in Central Java which is scheduled to commence operation in second quarter 2013. However, there is no certainty of gas supply to the FSRU as yet.

The other FSRU is located in Jakarta Bay with capacity of 500 mmscfd. The FSRU will meet the gas needs of PLTU Tanjung Priok and Muara Karang power plants owned by PLN. The FSRU is scheduled to start operating in frist quarter of 2012. The gas for the Jakarta Bay FSRU will be supplied from Bontang, Kalimantan at volume of 200 mmscfd. (*)