Indonesia's Perusahaan Gas Negara to Sign Deal With BP for Tangguh LNG

Indonesia’s state owned gas distributor, Perusahaan Gas Negara (PGN) is expected sign an agreement with BP for supply of LNG from latter’s Tangguh LNG project, reports Jakarta Post.

PGN hopes the deal would be finalised its new floating storage and regasification unit (FSRU) begins operation in July, adds the newspaper.

The FSRU vessel in Lampung is designed to have a storage capacity of 170,000 cubic meters of LNG and a capacity to receive 2 million tons of LNG per year for regasification. The fuel will be supplied to power plants, industrial, small and medium enterprises as well as households in Lampung and South Sumatra. 

It will also help the company supply some of its clients in West Java, Banten and Jakarta, reports Jakarta Post.

The FSRU in Lampung is PGN’s second facility after the West Java FSRU, which began operation in 2012. The West Java FSRU is operated by Nusantara Regas — 40 percent of which is owned by PGN while the remaining is held by state-owned oil and gas firm Pertamina.