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Tangguh to start supplying LNG to Lampung
The Tangguh plant in West Papua, operated by BP Berau Ltd, has begun supplying liquefied natural gas (LNG) to the floating storage and re-gasification unit (FSRU) owned by state-owned gas distributor PT Perusahaan Gas Negara (PGN) off the coast of Lampung, South Sumatra
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he Tangguh plant in West Papua, operated by BP Berau Ltd, has begun supplying liquefied natural gas (LNG) to the floating storage and re-gasification unit (FSRU) owned by state-owned gas distributor PT Perusahaan Gas Negara (PGN) off the coast of Lampung, South Sumatra.
Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) acting head J.Widjonarko said in a release in Jakarta on Sunday that on July 1, the agency approved the inaugural shipping of the LNG cargo.
'We have approved the signing of the free-on-board LNG sale and purchase agreement and the confirmation notice between Tangguh and PGN over the selling of one cargo of LNG to the FSRU Lampung,' he said, as quoted by Antara news agency.
Widjonarko said the inaugural shipment was one of five planned to be delivered to the FSRU in Lampung from Tangguh in 2014.
The inaugural shipment has a volume of 3.32 million British thermal units (mmbtu) and will be used for commissioning the FSRU Lampung.
As many as 14 shipments of LNG will be delivered to the FSRU Lampung in 2015. The gas from the FSRU in Lampung will be used to meet gas demands in the electricity and industrial sectors in the west part of Java; it will be connected via the South Sumatra - West Java (SSWJ) pipelines.
In the future, the FSRU in Lampung will also supply gas to meet demands in Sumatra. 'This shows commitment in the upstream oil and gas industry to meet domestic gas demands,' said Widjonarko.
He said Tangguh had also supplied two of the four LNG shipments slated to be sent to state fertilizer company PT Pupuk Iskandar Muda (PIM) in 2014, using a swap mechanism with the Arun plant in Aceh to deliver the cargo.
In 2014, domestic allocation of natural gas reached 54 percent of total production, with the remaining 46 percent sold as exports. (ebf)
