Jakarta Post: Lampung FSRU Uncertain as PGN, PLN Disagree on Price

State-run gas distributor Perusahaan Gas Negara (PGN) is expecting to resume operations of the Lampung floating storage and regasification unit (FSRU), although discussions the with the main client, PLN, are still in a deadlock.

PGN president director Hendi Prio Santoso said discussions with PLN were continuing in order to settle the disagreements.

“We are in a process that runs in line with our expectations. We are also being facilitated by the Finance Ministry so that every concern can be resolved,” Hendi said.

The Lampung FSRU started operation last year. The development of the FSRU was part of an attempt to boost gas facilities in the country so that more gas could be consumed domestically. 

However, the FSRU operation was briefly interrupted earlier this year as PGN, which operates the facility, recorded zero demand from its buyers, partly because of the slowing economic growth. The Lampung FSRU should have received liquefied natural gas (LNG) cargo sent from the Tangguh plant in West Papua, regasified them and then delivered the gas to customers, including state-owned electricity firm PLN and a number of industries in Lampung and West Java. MORE