PLN ready to take up LNG from Tangguh?s Train 3

By Godang Sitompul

State owned utility firm PT Perusahaan Listrik Negara (PLN) welcomes the commitment of BP, the operator of Tangguh LNG plant, to allocate 40 percent of LNG output from its planned Train 3 and expressed readiness to fully absorb the gas supply.

?We are ready (to absorb the gas). Price should be is the only remaining issue here. But we are ready to sign the HoA (Heads of Agreement),? PLN Head of Oil and Gas Fuel Division M. Suryadi Mardjoeki told petromindo.com.

Suryadi?s remarks were in response to news that the government has approved in principle the Plan of Further Development (POFD) for the expansion of Tangguh project in West Papua, which basically centers on the development of Train 3.

Under the terms of the plan, BP and its partners have agreed to sell and supply 40 percent of the LNG output from Train 3 to PLN for the domestic market. In addition, as part of the plan up to 15 million standard cubic feet a day of piped gas, supplied from the Tangguh fields and sufficient to generate up to 50 MW of local power, would be allocated for sale from the date of the Train 3 start-up.

Also, recognizing the immediate needs that exist in the local area, the plan includes agreement for up to 8MW of power generated at the plant to be sold to PLN to distribute to surrounding communities.

BPMIGAS Deputy Chairman for Planning Affairs Widhyawan Prawiraatmadja told petromindo.com that Train 3 would be able to produce 60 cargoes of LNG, of which 24 cargoes are dedicated for domestic market.

"LNG production from Tangguh?s Train 3 is expected at 60 cargoes. So from 3 trains, total production would be around 180 cargoes,? Widhyawan said.

Editing by Dadan Wijaksana