PGN gets gas allocation for FSRU Lampung

State gas distributor PT Perusahaan Gas Negara (PGN) said that the government had agreed to allocate 10 cargoes of liquefied natural gas (LNG) starting in 2015 for the Floating Storage Regasification Unit (FSRU) that the company is developing in Lampung.

"We?re grateful for the support of the energy and mineral resources ministry to secure the gas supply for our Lampung FSRU. Currently, we?re focusing on the development of the FSRU. We hope we can complete it next year (2014),? PGN Corporate Secretary Heri Yusup said in Jakarta on Thursday.

Heri noted that as a state company having expertise and experience in developing and managing gas infrastructure, the company has committed to continually developing new gas infrastructure in Indonesia.

According to him, the construction of the FSRU vessel is still going on in Korea. Following the steel cutting--the basic of the FSRU--this month it will enter the stage of FSRU keel laying. After that, it will follow with the development of mooring system, OTS & ORF and then pipeline.

The Pipeline system will span about 21 kilometer from Labuhan Maringgai where the FSRU will be located offshore Lampung. Once completed, the FSRU will have a capacity of 1,5 MTPA.

He said that the development of the FSRU is part of PGN?s commitment to support the government?s plan to allocate more of the gas production in the country for domestic market.

He said PGN would continue to increase gas supply for its customers. So far, PGN customers have already amounted to about 89,000, who are mostly industries.

?That will be a boon for industries as they will be able to get more gas supply as the cheaper and cleaner energy compared to the more expensive oil fuel,? he added.

Editing by Benget Besalito Tnb.