Hoegh LNG Is Building Floating Storage and Re-gasification Facilities in Indonesia

Posted on Dec 13, 2011

In line with Presidential Instruction on Accelerating Implementation of National Development Priorities In 2010, PT Gas Negara (Persero) Tbk (“PGN”) has signed a Heads of Agreement for LNG Floating Storage and Re-gasification Facilities (“FSRF”) in Belawan, Medan, North Sumatra with Hoegh LNG – PT Industrial Engineering Consortium on Tuesday, December 6, 2011 last.

Senior Officer External Communication PT PGN (Persero) Tbk, Yosephine Ina explained that in the HOA, the Consortium will provide FSRF Vessel for a period of 20 (twenty) years including the construction of mooring systems, pipelines and gas receiving stations.

The FSRF Terminal mockup

The FSRF vessel which is currently being built will be capable of flowing gas produced from the re-gasification process of up to 240 MMscfd.

The LNG that has been re-gasified will be piped along around 16 km of offshore and around 6 km of onshore pipeline to supply PLN’s Sicanang Gas Plant in Belawan, Medan, North Sumatra in accordance with the Heads of Agreement between PGN and PLN which was signed on December 1, 2011 by the Director of PLN and PGN.

“This project is planned to be completed in the second semester of 2013. LNG gas from the re-gasification process will also be channeled to meet the needs of industrial customers in Medan and surrounding areas, “said Yosephine.

The FSRF or natural gas terminal is using a new technology in storage and re-gasification of LNG. This FSRF is a continuation of LNG development program being conducted by PGN together with PT Pertamina (Persero) in West Java. The West Java FSRF is the second system in Indonesia capable of loading and unloading of LNG from ship to ship .

Yosephine emphasized that PGN expects to continue to play a role in the increased use of natural gas as an energy source that is more efficient, clean and environment friendly in order to support government programs to meet domestic energy needs.