PLN wants compensation from delay in West Java FSRU

By Godang Sitompul

State owned utility firm PT PLN is requesting Energy and Mineral Resources Ministry to impose a penalty on PT Nusantara Regas, the operator of Indonesia?s first Floating Storage and Regasification Unit (FSRU) to be deployed at the Jakarta bay, as the project is running behind schedule.

Initially, the operation of the FSRU was scheduled in April, but some technical problems may push back the facility?s coming on stream to June or July.

?PLN cannot do anything to Regas, because this is a government project. Regas should get a penalty (from the Ministry) so it can become more professional,? Head of Oil and Gas Fuel Division at PLN M.Suryadi Marjoedki told petromindo.com

He said that the Ministry has put in place a mechanism to deal with sort of issue. ?This penalty is a normal practice, just as the mechanism applied on penalty on projects, in the form of compensation which amounts for a certain percentage of the contract per day during the delay.?

Deputy of Operation at upstream authority BPMIGAS Rudi Rubiandini said that such a penalty will depend on whether or not the clause on penalty because of a delay is incorporated in the contract. Nusantara Regas, a joint venture between PT Pertamina and PT PGN, is trying to ensure that the FSRU will sail from Singapore in early April and followed by commissioning for up to 60 days. President Director Hendra Jaya expects the facility would be able to deliver the gas to PLN, its main buyer, before July.

Editing by Dadan Wijaksana