PGN still scouting for gas for Lampung FSRU and mini-LNG terminals

By Godang Sitompul

State gas distribution firm PT Perusahaan Gas Negara (PGN) (Persero) is still looking for gas supply for its LNG receiving terminal in Lampung, which is scheduled to start operations in the next few months and for its proposed mini LNG terminals that it plans to build in eastern part of Indonesia.

Thus far, the Lampung floating storage and regasification unit has secured 5 cargoes of LNG in 2014 and 14 cargoes for 2015 supplied from Tangguh LNG project. ?Beyond 2015, PGN is still waiting for gas allocation set up by Ministry of Energy,? Technical and Operations Director Mananggap Napitupulu said.

Meanwhile, Commercial Director Jobi Triananda said that at its normal capacity, Lampung FSRU will require 28 cargoes of LNG annually. ?We are hoping to be able to get supply from domestic producers such as Tangguh Train III and Masela, but PGN is also considering to get LNG supply from overseas producers,? he said.

PGN plans to sell gas from Lampung FSRU to West Java, Lampung and industrial city of Dumai in Central Sumatra through pipeline it partly owns.

Under the Indonesian regulation, Ministry of Energy has right to allocate gas for domestic and export. The Ministry also has right to allow gas import to Indonesia.

CEO Hendi Prio Santoso said that PGN has approached overseas LNG producers for possible supply. ?PGN has Memorandum of Sale & Purchase Agreements (MSPAs) with Gazprom, Shell, BP, BG and Mitsui,? he told Petromindo.Com on a sideline of Lampung FSRU christening ceremony in Ulsan, South Korea on Monday.

He did not give further detail about the MSPAs.

He said after the Lampung FSRU commences operations, PGN will focus on developing mini LNG terminals in eastern part of Indonesia . ?Once we have adequate gas supply, we can build mini-LNG terminals in eastern Indonesia to supply power plants and industry,? he said. Each mini-LNG plant, he said, will be able to process 20-80MMSCFD of gas.

Editing by Alexander Ginting