The Jakarta Post | April 26, 2012
Liquefied natural gas (LNG) producer PT Badak NGL, a subsidiary of state oil and gas firm PT Pertamina, began the first LNG delivery from the Bontang LNG plant in East Kalimantan to a floating storage and re-gasification unit (FSRU) in Jakarta Bay, West Java, on Wednesday.
Pertamina gas director Hari Karyuliarto said the shipment was the first LNG delivery to the domestic market since PT Badak NGL was established in 1974.
He said the amount of LNG which would be sent to the FSRU, operated by PT Nusantara Regas, jointly owned by Pertamina and state gas distributor PT Perusahaan Gas Negara (PGN), would be 11.75 million tons for the contract period of 11 years or 1.06 million tons per annum (mtpa).
The vessel that will be used as FSRU in Jakarta Bay departed from the Jurong Shipyard in Singapore on April 12 and is expected to arrive in Jakarta Bay on April 27, while LNG Aquarius, a vessel used to deliver LNG from Bontang to the FSRU, will take around two and a half days to reach Jakarta.
LNG Aquarius has a total LNG capacity of 125,600 cubic meters. It was first used to ship LNG from Bontang to a buyer in Osaka, Japan, in August 1977.
“FSRU Regas Satu will arrive in Jakarta Bay and be ready for operations soon. Today, we are witnessing the first LNG delivery to the domestic market. It’s a historic step on the path to Indonesia’s energy security,” Hari said during his speech before officially inaugurating the departure of LNG Aquarius from Bontang, East Kalimantan.
Indonesia’s domestic gas demand was expected to soar from 3,500 million standard cubic feet per day (mmscfd) in 2009 to 4,700 mmscfd in 2015, he revealed.
Thus, a better gas infrastructure had to be in place to ensure all gas users received sufficient supply, he added.
“The growing demand has to be met by the construction of more LNG terminals and gas transportation pipelines. Pertamina is ready to be the backbone in fulfilling domestic gas need,” Hari said.
The Bontang LNG plant’s operation began in the late 1970s with two trains (production facilities). In the 1990s, the plant already had eight trains with a total capacity of 22.5 mtpa. As of April 21, it had dispatched 8,085 shipments to Japan, Korea and Taiwan.
This year, the plant is expected to produce 15.35 million tons of LNG or equal to 271 cargoes, including the allocation for the spot market. As many as 222 cargoes will be sent overseas. Output was 16.48 million tons or 313 cargoes last year.
The Energy and Mineral Resources Ministry’s director general for oil and gas, Evita Herawati Legowo, said the LNG delivery was a milestone in realizing the government’s plan to utilize natural gas as the country’s growth engine.
“Natural gas is no longer just a revenue source. It will be our engine of growth. Most gas resources are located in Eastern Indonesia, therefore we need good infrastructure to transport the gas to other parts of the country,” Evita said.
http://www.thejakartapost.com/news/2012/04/26/first-lng-domestic-users-dispatched.html
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