Indonesia: PGN Inks Deal with KHI Pipe Industries for Medan FSRU

March 8, 2012

Indonesia’s PT Perusahaan Gas Negara (PGN) said in a statement that it has signed an agreement with PT KHI Pipe Industries for the procurement of pipelines connecting the planned floating liquefied natural gas (LNG) terminal in Belawan with its customers in Medan.

“This signing is a manifestation of our commitment to accelerate the fulfillment of domestic gas needs, predominantly in Medan and surrounding areas,” PGN corporate secretary Heri Yusup said.

Under the agreement, KHI will provide 11-kilometer and 22-kilometer pipelines that comply with international standards to ensure operational safety.

“With the progress we have made so far we hope we will gain support from all stakeholders, particularly from the government, so that we can obtain sufficient gas supplies for the FSRU,” Heri Yusup said.

Höegh LNG and PGN signed a final agreement in January to provide PGN with an FSRU and mooring system offshore Belawan.

The company will use one of its newbuilding regasification vessels under construction at Hyundai Heavy Industries.

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LNG World News Staff, March 8, 2012; Image: Hoegh LNG