Jakarta Post: PGN Facility in Lampung Runs Far Below Capacity

The floating storage and regasification unit (FSRU) in Lampung, which is run by a subsidiary of state company PT Perusahaan Gas Negara (PGN), will operate far below its capacity next year due to steep declines in gas demand in the area. 

The facility has a capacity of up to 14 cargoes of liquefied natural gas (LNG) a year but it will only store around four to five cargoes next year, according to PGN director Muhammad Wahid Sutopo.

“We are still expecting an increase in demand [next year] compared to this year. However, we need to look at the demand profile and the LNG price,” Wahid said on Wednesday.

PGN owns the Lampung FSRU through its subsidiary PT PGN LNG Indonesia. Earlier this year, the operation of the facility was disrupted because of zero demand as potential buyers were affected by the country’s slowing economic growth. MORE