Rangga D. Fadillah, The Jakarta Post, Jakarta | Sat, 05/19/2012 1:08 PM
Publicly listed state gas transporter and trader, PT Perusahaan Gas Negara (PGN), hopes the construction of a floating storage and regasification unit (FSRU) in Lampung can be completed by 2014.
The company’s investment planning and risk management chief, Wahid Sutopo, reported that currently, the feasibility study for the project had been started and he was certain that the liquefied natural gas (LNG)-receiving terminal could begin operations as targeted.
“We’re still calculating the total investment needed to build the FSRU and whether it will have the same capacity as planned for Belawan [in North Sumatra],” he told reporters in Jakarta on Wednesday.
However, he was afraid that a delay might take place in the issuance of the permit and land procurement; therefore, he expected the government to legalize the project through a presidential instruction so that the company could accelerate its project activities.
Wahid continued that PGN aimed to merge the project with the project to build an FSRU in Sunda Strait by state steel maker PT Krakatau Steel’s plant in Cilegon, Banten. He said Krakatau Steel would then receive gas from the planned Lampung FSRU.
As reported earlier, PGN initially planned to establish an FSRU in Belawan. However, after state-owned oil-and-gas firm Pertamina revealed that it would convert the Arun LNG plant in Aceh into a receiving terminal, the government thought a conversion was more economical than building a new FSRU and decided to relocate the FSRU to Lampung.
Both the Belawan and Arun receiving terminals are scheduled to commence commercial operations in 2013.
Through a formal letter, the State-Owned Enterprises Ministry requested PGN to implement the relocation and ordered Pertamina to repay the investments that PGN had spent for the Belawan FSRU after an independent audit was conducted.
“We have anticipated the possibility of relocation, but we haven’t formally talked to contractors. We’ll do that as soon as possible,” he explained.
Responding to the relocation plan, state power utility PT Perusahaan Listrik Negara’s (PLN) division head for oil-based fuels and gas, Suryadi Mardjoeki, said his company could only absorb around 50 million standard cubic feet per day (mmscfd) of gas from the Lampung FSRU.
“We’ll use the 50 mmscfd of gas for our planned gas-fired power plants in Lampung. Most power plants in West Java utilize coal and the gas plants have received sufficient supply from the Jakarta FSRU [which is expected to begin gas deliveries in late May],” he said.
Suryadi reported the planned gas plants in Lampung will have a total capacity of 2x50 megawatts and would be used in peak hours only, generally in the afternoon.
However, he went on, if the trans-Java pipeline network, designed to channel gas from West Java to East Java, was ready, PLN might need more gas from the Lampung FSRU.
Gas from the Lampung FSRU will be delivered to Java via PGN’s South Sumatra – West Java pipeline.
http://www.thejakartapost.com/news/2012/05/19/lampung-gas-terminal-set-start-operating-2014.html
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