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Pertamina to build two small FSRUs, import LNG from Mozambique

JAKARTA (Rambu Energy) – State owned oil and gas company PT Pertamina is planning to develop two small-scale Floating Storage and Regasification Unit (FSRUs) in Cilacap, Central Java and coastal town of Cilamaya, West Java, a company executive said.

Senior Vice President Engineering and Operation of Pertamina Salis Aprilian was quoted by state news agency Antara that the FSRU will have a capacity to process 70 million standard cubic feet per day (MMSCFD) of gas respectively.

He said the final investment decision (FID) of the development of FSRU Cilacap has been approved by the company’s board. The construction of the FSRU Cilacap will start at end of 2015 and targeted to be completed in mid 2017.

Salis Aprilian said the FSRU Cilacap will be supplied to meet gas needs of Pertamina’s refinery, PT Holcim Indonesia’s cement plant and other industries in Cilacap area.

Pertamina expects the LNG needs of the FSRU will come from Tangguh and Bontang LNG plants as well as LNG planned projects of ENI and Chevron.

As for FSRU Cilamaya, Pertamina has yet to finalize the FID, said Salis Aprilian. FID is an important phase as it shows detailed construction plan of the project as well as final investment needed to develop the project.

The LNG that will be re-gasified at the planned FSRU Cilamaya will be delivered to meet gas needs of industries in the area as well as power plant that will be developed by Pertamina in cooperation with local partners.

In addition to the FSRU, Pertamina also plans to build an onshore LNG receiving terminal in Bojonegara, Banten in the western tip of Java island with a storage capacity of around 400-500 MMSCFD.

Pertamina expects to tender the construction of the LNG receiving terminal in 2015 with a target to complete the construction by 2018. One of big customer in Banten, he said, is PT Krakatau Steel, a state-owned giant steel producer.

LNG Impor

Separately, Salis Aprilian said Pertamina is also planning to import liquefied natural gas (LNG) from Mozambique as an anticipation to cover shortage of LNG supply after 2020.

He argues that Indonesia is one of the world’s largest LNG producer, but most of its production is for export under long term contracts.

“Imports are needed to meet fast growing domestic demand,” Salis was quoted by Antara as saying. Pertamina expects to import LNG from Africa, including Mozambique, of 3 million tons after 2020.

Earlier, Pertamina already signed two 20-year contracts to import a total of 1.52 million tons of LNG annually starting 2018-2019 from Cheniere Energy Inc, United States.

Pertamina signed the first contract on 4 December 2013 and the second on 1 July, 2014 each for 0.76 million tons per year. (*)

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