Indonesia's PGN Plans $500 mn Investment in Lampung FSRU

Indonesian gas distributor Perusahaan Gas Negara (PGN), plans to invest $500 million this year to finalise its floating storage receiving unit (FSRU) in Lampung and gas pipeline in Central Java, Director Wahid Sutopo said, reported Kontan Online this week.

In July, Hoegh LNG announced that the PGN FSRU Lampung project offshore Indonesia reached an important milestone when the unit, along with its associated mooring and pipeline to shore was deemed mechanically complete and commenced commercial operation for its client Perusahaan Gas Negara (PGN).

The PGN FSRU Lampung further completed receiving its first cargo of LNG on 27 July, and has now entered its final commissioning phase. 

The contract with PGN is for 20 years.

The second and third FSRU is scheduled to commence commercial operation later this year and the fourth FSRU will likely be delivered in the first quarter next year, Hoegh said.

Last month, Perusahaan Gas Negara (PGN) said 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. The Lampung FSRU has a capacity to supply 240 mmscfd of natural gas.