PGN expects to get up to 1.5MTPA of LNG supply from Tangguh

IDX-listed gas distribution firm PT PGN (Persero) said it might get LNG supply of 1.25-1.5 MTPA from BP-operated Tangguh LNG for its proposed floating storage and re-gasification unit in Belawan, North Sumatra.

President Director Hendi P. Santosa said on Monday that PGN and BP are finalizing the deal with upstream oil, gas authority BPMIGAS and Directorate General of Oil and Gas facilitating the talks.

Hendi said the Belawan FSRU will have capacity to process 1.8 MTPA of LNG or about 240 MMCFD with most of gas will be sold to state electricity firm PT PLN (Persero). According to Hendi, the FSRU will start construction in late 2011 with start-up seen in late 2012. He did not say where PGN will get the remaining LNG supply to fill the FSRU?s capacity.

Hendi said PGN has also appointed preferred EPC contractor for the project, but declined to disclose detail. Bisnis Indonesia daily earlier cited a report that PGN has appointed Norway firm Hoegh LNG to provide the floating terminal. (godang)