PLN finalizing deal with PGN for securing gas from FSRU Belawan

State electricity company PT PLN said it is finalizing an agreement with state gas distributor PT Perusahaan Gas Negara Tbk (PGN) to purchase gas from floating storage and regasification unit (FSRU) Belawan, North Sumatera, to be developed by PGN.

?PLN will utilize available gas, including from FSRU Belawan facility,? said M. Suryadi Mardjoeki, Division Head for fuel procurement of PLN. He said gas from the FSRU would be supplied to PLN?s gas fired power plant Belawan (PLTGU Belawan).

PLN is also seeking to add gas supply from Arun LNG plant which is planned to be modified into LNG regasification terminal. However, Suryadi said gas from Arun would not only for PLN power plant but also supplied to Pupuk Iskandar Muda fertilizer plants.

The Belawan FSRU will be Indonesia?s second. The first one is the FSRU unit at the Jakarta bay, which is scheduled to commence operation in March next year.

PGN has earlier entered into binding Heads of Agreement with H?egh LNG Holdings Ltd of Norway for the provision of a floating storage and regasification unit (FSRU) offshore Belawan.

Last Friday, Evita Legowo, Director General for Oil and Gas said portion of gas from Tangguh LNG project, Papua, operated by BP Plc, will be allocated for FSRU Belawan. (bernard)