Indonesia's PGN to Supply Gas from Lampung FSRU to 14 Firms

Indonesian gas distributor Perusahaan Gas Negara (PGN) said on Wednesday that it has signed contracts to supply 1.3 million standard cubic feet per day (mmscfd) of gas from its FSRU in Lampung to 14 companies.

Ridha Ababil, PGN’s corporate secretary, said that the average selling price is $10 per million British thermal unit, reports Jakarta Globe newspaper.

The newspaper further reports that PGN is in the process of securing a contract to supply as much as 45 mmscfd of natural gas to three gas-fired power plants that will be constructed by state utility firm Perusahaan Listrik Negara.

The Lampung FSRU, which is expected to start operations next month, has a capacity to supply 240 mmscfd of natural gas. PGN has completed 90 percent of the planned 100 kilometers natural gas pipeline that will connect the offshore facility to customers.

PGN had secured five cargoes of liquefied natural gas for the FSRU from Tangguh LNG plant in West Papua this year, Jakarta Globe says. The natural gas supply will then be increased to 14 cargoes next year.