Shell, Petronas, and Qatar Gas express interest for C. Java LNG terminal

PT Pertamina Gas (Pertagas), a gas distribution unit of state oil, gas company PT Pertamina (Persero) is ready to fully import gas for the planned Floating Storage and Re-gasification Unit (FSRU) in Central Java amid uncertainty in domestic supply.

Pertagas Operational Director Gusti Azis said the company is currently active in looking to import LNG from Shell, Petronas, and Qatar Gas. The company plans to import up to 3 million tons of LNG per year with a price of US$13-14 per mmbtu for a 15-year contract.

Gusti said that Shell, Petronas, and Qatar Gas have even expressed interest in having a stake in the project, for instance, via providing the financing for the project or the technology.

He said that Pertagas is open to such offer. The planned FSRU is currently under feasibility study. The facility is expected to be on stream in the first quarter of 2013, and that the gas would be allocated for power plants of state electricity firm PLN.

Meanwhile, Oil and Gas Program Development Director at the Ministry of Energy and Mineral Resources, Heri Poernomo said that the planned FSRU in Jakarta has secured gas supply from the Bontang facility, while the FSRU in Belawan will get gas supply from the Tangguh facility in Papua.

?We have three FSRU facilities, the one in Jakarta has obtained (gas supply) from Bontang, we?ll also obtain (supply) from Tangguh for the FSRU in Belawan. But unfortunately, for the one in Central Java, we?re still looking for the source of the LNG, there is possibility it will not come from domestic (source), but from overseas,? he said. (*)