Lampung FSRU Expected to Boost Utilisation of Domestic LNG

A floating storage regasification unit (FSRU) in Lampung is expected to increase the utilisation of domestic liquefied natural gas production and develop local industry in the country.

The Energy Ministry’s Director General of Oil and Gas I.G.N Wiratmaja Puja said that Indonesia still lacks natural gas infrastructure. For example, the country has less than 10,000 km of natural gas pipeline and only a handful of LNG and regasification storage facilities. (Read: Pertamina Begins to Import LNG Amid Looming Deficit)

On the upside, the floating storage regasification unit (FSRU) in Lampung, which was constructed by Perusahaan Gas Negara (PGN), is expected to increase the utilisation of domestic natural gas. “This goes along with the government’s move to reduce LNG imports by prioritising domestic consumption,” said Wiratmaja, who is also a commissioner of PGN, on the official page of the Directorate General of Oil and Gas, Monday (25/4).

Last year, PGN’s Lampung FSRU was expected to receive 1.1 million cubic metres of LNG from the Tangguh refinery in Papua. On 2 April, the regasification unit received 1 cargo of LNG from Tangguh refinery, and another on Sunday (24/4).PGN is currently negotiating to secure supply from other sources too.

Meanwhile, President Director of PGN LNG Indonesia Mugiono said that the Lampung FSRU will secure PGN’s natural gas supply, particularly for customers in West Java and South Sumatra. Before being piped to customers, the LNG will be regasified, converting it from liquid to gas. (Read: PGN to Construct 1,680 Kilometres of Natural Gas Pipeline)

From the Lampung FSRU, the gas will be channelled via the South Sumatera West Java (SSWJ) underwater pipeline to the receiving terminal in Labuan Maringgai. "So the gas can be distributed to PGN’s customers in West Java and South Sumatra,” he said.

According to Mugiono, the Lampung FSRU has the capacity to supply gas to various customer segments, including the SME, industry and residential sectors and power plants. The facility will aim to help meet the gas demands of the 35 GW power plant project prioritised by the Widodo administration. (Read: FSRU Lampung Gas Facility Readies to Support Widodo’s Power Mega Project)

Going forward, PGN will continue its efforts to increase the role of Lampung FSRU in adding economic value, particularly through providing environmentally friendly, efficient and safe energy. “We will continue to support the government’s efforts to reduce LNG exports by optimising the domestic natural gas infrastructure,” he said.