Tangguh loads LNG cargo to domestic market

BP began on Sunday the delivery of the first cargo of LNG from its operated Tangguh LNG plant in West Papua to the Floating Storage and Regasification Unit (FSRU) in West Java operated by PT Nusantara Regas.

?This first Tangguh cargo for West Java is a significant achievement and further shows our determination to fulfilling our commitment to the Government of Indonesia regarding domestic energy demand. We are hopeful of soon concluding further arrangements to support this for the long term,? William Lin, BP Regional President Asia Pacific said in a statement.

This landmark delivery to West Java follows the conclusion earlier in 2013 of the arrangement for Tangguh to supply LNG cargoes to fertilizer company PT Pupuk Iskandar Muda (PIM) through a Cargo Substitution Arrangement with Arun Contractors and PT Pertamina, the company said. Five Tangguh cargoes have been delivered to PIM this year through substitution.

Through the development of the Tangguh Expansion project, Tangguh?s role as a significant energy source for Indonesia will grow further, with BP and its partners having committed to supply 40 percent of Tangguh Train 3 LNG, up to 24 cargoes per year, to PT Perusahaan Listrik Negara (PLN) for the domestic market. BP, its partners and the government of Indonesia continue to work together to progress Train 3, targeting operations in 2019.

Tangguh has agreed to supply 4MW of power to state electricity company PLN (to sell and distribute to the residential communities of the Teluk Bintuni Regency, West Papua. Up to a further 4MW of power may be supplied at the Tangguh plant to PLN to further electrify residential communities in the following years. Tangguh completed the installation of electricity infrastructure and equipment interface at the beginning of 2013. We are now ready to supply the first phase of 4MW electricity from Tangguh LNG Plant but supply is waiting-on the completion of PLN?s receiving and distribution system. In the meantime, further technical evaluation is being performed to prepare for the second phase of the project that may provide and supply further 4MW electricity to PLN in the future.

Editing by Reiner Simanjuntak