Indonesia’s First FSRU to Start Operation Soon

Indonesia's First FSRU to Start Operation Soon

Indonesia’s first LNG receiving and regasification terminal is expected to start operation soon as Regas Satu Floating Storage and Regasification Unit (FSRU) set sail from Jurong Shipyard in Singapore heading to Jakarta Bay.

The FSRU release ceremony was conducted by the President Director of PT Pertamina (Persero) Karen Agustiawan, acting as the President Commissioner of PT Nusantara Regas, which is the operator of Regas Satu FSRU. The officials from Energy and Mineral Resources Ministry, BP Migas, BPH Migas, Pertamina Board of Commissioners, Pertamina Board of Directors, PGN, and Nusantara Regas, as well as Total E&P Indonesie management were also present at the ceremony.

The President Director of PT Pertamina (Persero) Karen Agustiawan said the completion of Regas Satu FSRU was one of the important steps in operating the LNG receiving terminal, which is known as the West Java FSRU Project. The West Java FSRU facility is scheduled to start operating phase by phase by May 2012.

“The inauguration of FSRU voyage is one of the essential steps to the operation of the first FSRU in Indonesia. This facility will undergo cooling down and commissioning phase starting from the end of April and is expected to start its commercial operation in May 2012,” Karen said.

The operation of West Java FSRU will be an important milestone in fulfilling domestic demand for gas. With the maximum capacity of 3 million metric ton of LNG annually, the FSRU will supply gas to the Muara Karang PLTGU and Tanjung Priok PLTGU, amounting to 400 MMSCFD.

“With this FSRU, Nusantara Regas will be able to fulfill the gas supply commitment to PLN with the capacity of 1.5 million LNG annually,” she said.

The FSRU will be operated by Nusantara Regas, the subsidiary of Pertamina and PGN with ownership composition of 60% under Pertamina and 40% under PGN. The West Java FSRU will receive its LNG supply from Bontang to the total amount of 11.75 million ton in 11 years.

The West Java FSRU Project is aimed at supporting the government program to perform energy diversification in order to achieve energy sustainability in long run. With the FSRU, Nusantara Regas will also develop other business potentials to increase and optimize the value of the FSRU.

Domestic demand for gas reached around 2,000 MMSCFD in 2008. It is expected to jump to 4,500 MMSCFD in 2020, mainly driven by the increase in power generation, industry, fertilizer, transportation, and household consumption.

Source: Pertamina, April 12, 2012

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