Pertamina - PGN Start LNG for Domestic Pioneer Project

abarrelfullabarrelfull wrote on 30 May 2011 05:42
Tags: indonesia lng pertamina

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PT. Pertamina (Persero) and PT Perusahaan Gas Negara (Persero) Tbk (PGN) have begun construction of Floating Storage RegasificationTerminal (FSRT) in West Java as an effort to use LNG to meet domestic demand, especially for PLN power plants. The construction of FSRT infrastructure also a milestone for LNG infrastructure in Indonesia, whereas after ± 30 years our country producing LNG, this time is the first time LNG utilized to meet domestic demand because the availability of FSRT infrastructure.

This project is a commitment to support government policy on the Acceleration of the Implementation of National Development Priorities, 2010, in developing the gas infrastructure through project development of West Java FSRT. The project realize by PT Nusantara Regas, a joint venture company owned by Pertamina (60%) and PGN (40%).

FSRT West Java is planned to be commenced in January 2012 with a capacity 3 million tonnes of LNG a year, equivalent to the distribution of 400 million cubic feet of natural gas a day (MMSCFD). The gas to be used for PLN's Muara Karang and Tanjung Priok power plants in Jakarta.

The allocation of LNG were obtained from Mahakam Block Contractor in East Kalimantan during this time amounted to 1.5 million tons a year, equivalent to 200 MMSCFD. Therefore, PT Nusantara Regas seeking on additional LNG supplies to reach maximum capacity.

FSRT or floating liquefied natural gas terminal is a new technology in the world on storage and gasification of LNG. West Java FSRT is FSRT with system loading and unloading of LNG from ship to ship, the first in Asia and the 12th FSRT in the world.

The advantages of the floating LNG receiving terminal compare to onshore LNG receiving are lower construction and operational cost, shorter construction time dan could easily mobilize that appropriable for Indonesia, which is an archipelago.

After completion of LNG FSRT in West Java, it is expected to reduce government subsidy on fuel purchase by PLN. To distribute the natural gas, from the gasification of LNG, from FSRT to PLN power plant in Muara Karang 15 km long of pipeline will be built under the sea with a size of 24 inches.

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