PGN LNG And Hoegh Agree To Optimize Commercial And Utilization Of The Lampung FSRU

Gas Illustration (Photo: Antara)

JAKARTA - PT PGN LNG Indonesia and PT Hoegh LNG Lampung carried out a new agreement to further optimize the cooperation of both parties in managing the LNG FRSU Lampung Terminal.

This agreement is a follow-up to the arbitration process for the Lampung FSRU (LOM Agreement) Rental, Operation and Maintenance Agreement which has been going on for the past few months.

PT PGN Tbk's Corporate Secretary, Rachmat Hutama, said that the agreement that took place was stated in the Settlement Agreement, which stated that it was to withdraw the arbitration case.

"And then the parties will negotiate to obtain more optimal cooperation for the parties in the commercial aspect of the LOM Agreement," said Rachmat, Tuesday, February 6.

PT PGN LNG operates the Floating LNG Terminal Facility /Floating Storage & Regasification Unit in Lampung as an integrated natural gas infrastructure for gas supply to DKI Jakarta, West Java, South Sumatra, and Lampung.

FSRU Lampung is connected to an underwater pipe with a diameter of 24-inch 21 km to the Onshore Receiving Facility (ORF) in Lampung.

The ORF system is connected to the SSWJ (South Sumatra -West Java) transmission network at Labuhan Maringai station and Lampung offtake station. LNG regasification gas at FSRU Lampung can be channeled to the distributions of West Java, South Sumatra, and Lampung.

Regasification facilities are needed to create security supply including flexibility, supply reliability, and supply continuity. With the concept of Merchant Business Model, it will provide flexibility to maintain the reliability of supply not only to rely on pipeline gas supply with the availability of PGN natural gas supply obtained from various supply sources, namely pipe gas and LNG and most recently BioMethane gas type.