Rekind to build pipeline for FSRU Belawan project

By Edi Junaedy

Engineering company PT Rekayasa Industri (Rekind) said it has secured contract worth US$ 80 million to build a pipeline that will be tied up with the Floating Storage and Regasification Unit (FSRU) Belawan, North Sumatera to be built by PT Perusahaan Gas Negara Tbk.

?Rekind will construct the pipeline, while Hoegh (of Norway) will lease the FSRU at a daily rate,? Wilka Osca, Corporate Secretary of PT Rekind told Petromindo.com.

He said the 20-inch pipeline will be built along 17 kilometers offshore and 5 km onshore, linking the FSRU with the gas-fired power plant PLTGU Sicanang in North Sumatera, owned by state electricity company PT PLN.

Earlier, PGN and H?egh LNG Holdings Ltd of Norway had signed Heads of Agreement (HoA) for the provision of FSRU offshore Belawan, near the city of Medan.

The HoA is based on the use of H?egh LNG's first newly built FSRU due for delivery at the end of 2013 and under construction at Hyundai Heavy Industries in Korea. Hoegh has agreed that the FSRU will carry Indonesian flag in line with the cabotage policy.

Editing by Roffie Kurniawan