PGN secures 19 cargoes of LNG for Lampung FSRU

By Godang Sitompul

State-controlled gas distribution firm PT PGN (Persero) has secured 17 cargoes of LNG in 2014-2015 for its Lampung floating storage and regasification unit (FSRU), which will start operation later this year, a company official said.

?Ministry of Energy has allocated 5 cargoes for Lampung FSRU this year and 14 cargoes next year from Tangguh LNG,? Technical and Operations Director Mananggap Napitupulu said on Monday. He added that beyond 2015, the company still have to wait for gas allocation set by the government.

Lampung FSRU project is slated to start operations in the second or third quarter of this year.

The new Lampung FSRU, which will cost the firm around US$300 million, will have a storage capacity of 170,000 cubic meters of LNG and a capacity to receive 2 million tons of LNG per year.

PGN have selected Norway-based Hoegh, an LNG transportation and services company, to operate the Lampung FSRU under a 20-year contract.

Editing by Alexander Ginting