PLN concerns of LNG supply sustainability to FSRUs
Friday, January 6 2012 - 11:13 PM WIB
State electricity firm PT PLN expressed its concerns over supply sustainability of liquefied natural gas (LNG) from Bontang LNG plant which may affect the operation of the floating storage regasification unit (FSRU) West Java at the Jakarta bay.
The FSRU which is expected to come on stream in March this year will receive LNG supply from Bontang in East Kalimantan.
?FSRU at the Jakarta bay will get LNG from Bontang at volume of 1.5 million tons per annum (MTPA), however its (Bontang production) tends to decline. We are concerned,? Suryadi Mardjoeki, Deputy Director for Fuel and Gas Procurement of PT PLN, told Petromindo.com.
The FSRU will be used to deliver up to 500 MMSCFD of regasified LNG to Nusantara Regas? downstream pipeline to buyers including to the Muara Karang and Tanjung Priok power plants in Jakarta owned by PT PLN.
The FSRU West Java, the first such project in Indonesia, is owned by PT Nusantara Regas, a joint venture between PT Pertamina and state gas distributor PT Perusahaan Gas Negara Tbk. The FSRU vessel was converted from an oil tanker vessel by Golar LNG Energy Limited of Norway at a shipyard in Singapore.
On Thursday, Evita H. Legowo, Director General for Oil and Gas at the Energy and Mineral Resources Ministry said the West Java FSRU is now on its way to Jakarta bay and should arrive by the end of this month.
PLN also questioned over the LNG supply sustainability to the planned FSRU in Central Java, which will be built by Pertamina. ?If LNG supply (from domestic producers) to those FSRUs are not sustained, we may have to import,? said Suryadi.
Currently, PLN mulls importing LNG from Qatar and Iran.
Editing by Roffie Kurniawan