Pertamina Suspends Central Java FSRU Project, Indonesia

 Pertamina Suspends Central Java FSRU Project

In an attempt to streamline floating storage and regasification unit (FSRU) projects in Indonesia, the State-Owned Enterprises (SOE) Ministry ordered Pertamina oil and gas company to halt the Central Java FSRU project, Platts reported citing a senior official of the company.

The decision comes in the aftermath of the Ministry’s order to relocate Belawan FSRU, North Sumatra, planned by PT Perusahaan Gas Negara, to Lampung.

The Ministry’s decisions have been prompted by the need to avoid oversupply of gas, since Lampug FSRU has sufficient capacity to meet the gas needs of the area and maintain cost-efficiency. According to the president director of Pertamina gas, Gunung Sardjono Hadi, all activities on Pertamina’s 3 million mt/year FSRU project have been suspended for the moment, until further developments.

Platts cited Hadi as saying:

” We are completing the front-end engineering design of the FSRU project, but the tender for the engineering, procurement and construction contract will be halted until it is clear whether we can go ahead with the project.

“Lampung FSRU would be connected to the South Sumatra-West Java pipeline network, which meant that the gas could be channeled to Java. From West Java, the gas can be transported to Central Java and East Java through Pertagas’s planned 140-kilometer-long pipeline from the Muara Tawar power plant in Bekasi to Cirebon in West Java, the 255-kilometer-long pipeline from Cirebon to Semarang in Central Java and the 271-kilometer-long pipeline from Semarang to Gresik in East Java.”

The completion of the $1.15 billion project was initially scheduled for 2013. However, the final decision on the further activities will be made official in May, when all relevant stakeholders in FSRU projects will meet in order to decide on what will happen to Central Java FSRU project.

[mappress]

LNG World News Staff, April 20, 2012; Image: Golar