PGN LNG and Hoegh LNG Lampung Agree Cooperation for Lampung FSRU

February 06, 2024, 08.09 PM  | Reporter: Arfyana Citra Rahayu
PGN LNG and Hoegh LNG Lampung Agree Cooperation for Lampung FSRU

ILUSTRASI. The Lampung Floating Storage Regasification Unit (FSRU) ship belonging to the State Gas Company (PGN) received LNG cargo.


CORPORATE STRATEGIC - JAKARTA. PT PGN LNG Indonesia and PT Hoegh LNG Lampung have signed a new agreement to manage the FRSU LNG Terminal in Lampung.

This is a follow-up to the arbitration process over the Lease, Operation, and Maintenance Agreement of the FSRU Lampung (LOM Agreement) that has been ongoing for several months. 

The agreement was signed on Monday, February 5, 2024, in Jakarta, represented by Nofrizal as the Managing Director of PLI and Irman Rumadja as the President Director of HLL.

PGN Company Secretary Rachmat Hutama stated this agreement is outlined in a Settlement Agreement which states to withdraw the arbitration case. 

Read Also: PGN LNG dan Hoegh LNG Lampung Sepakat Optimalkan Kerja Sama Komersial FSRU Lampung

“Next, the parties will negotiate to obtain a more optimal cooperation for the parties in the commercial aspect of the LOM Agreement,” he said in an official statement, on Tuesday (6/2). 

PT PGN LNG operates the Floating LNG Terminal Facility /Floating Storage & Regasification Unit in Lampung as an integrated natural gas infrastructure for gas supply to the DKI Jakarta area, West Java, South Sumatra, and Lampung.

The FSRU Lampung is connected by a 24-inch diameter underwater pipe as far as 21 Km to the Onshore Receiving Facility (ORF) in Lampung.

The ORF is systematically connected to the SSWJ (South Sumatra -West Java) transmission network at the Labuhan Maringgai station and the Lampung offtake station. The regasified LNG gas at the FSRU Lampung can be distributed to West Java, South Sumatra, and Lampung.

Read Also: PGN Grup Siap Serap LNG Blok Rapak

Regasification facilities are needed to create supply security including flexibility, reliability, and continuity.

The "Merchant Business Model" concept, will provide flexibility to maintain supply reliability by not only relying on pipe gas supply with the availability of PGN's natural gas supply obtained from various supply sources namely pipe gas and LNG, and the latest is BioMethane gas type. 

In addition, the LNG regasification facility also serves as a supply point, if there is a surge in gas demand or if there is a decrease in pipe gas supply sources in the short or long term then this shows part of the efforts and commitment of PGN to provide uninterrupted service to customers.

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