Indonesia’s Lampung FSRU wraps up first STS LNG op in 2023

Hoegh LNG’s Lampung FSRU serving Pertamina’s Perusahaan Gas Negara off the southeast coast of Sumatra in Indonesia has completed its first ship-to-ship operation in 2023.

PGN LNG, a unit of PGN that operates the floating LNG import facility offshore Lampung, said in a social media post that this also marked the 44th ship-to-ship LNG transfer since 2014.

According to PGN LNG, the newest STS transfer took place on January 5-6.

The 2008-built 145,700-cbm, Tangguh Batur, delivered the shipment from BP’s Tangguh LNG export project in Indonesia’s Papua Barat province.

PGN LNG said the cargo belongs to Indonesia’s state power company PLN.

The regasified LNG from the FSRU-based facility goes for power generation and industrial users in West Java.

Connected to a tower yoke mooring system, the 170,000-cbm FSRU delivers gas via a 21 km long offshore pipeline.

The underutilized 2.7 mtpa facility received its 30th cargo in March 2021 since it started operations in 2014 and the 42nd shipment in October last year.

According to PGN LNG, the 138,000-cbm Prima Concord delivered the 43rd shipment in October last year.

The LNG carrier, previously known as Methane Kari Elin, supplied only 38,630 cbm of LNG during this operation, it said.

Dispute

The FSRU serves a 20-year charter deal PGN has with Hoegh. Hoegh now owns the unit after it completed the acquisition of Hoegh LNG Partners.

Hoegh and PGN are still in a dispute regarding the charter of the FSRU, revealed in 2021.

In August 2021, HMLP filed a countersuit against PGN over issues related to the Lampung FSRU charter.

Hoegh said in its third-quarter results report in November 2022 that the charterer’s claim of restitution if the lease deal is declared null and void is $416 million, increasing to $472 million by June 2023 plus interest and costs.

“PT Hoegh LNG Lampung will take all necessary steps and will vigorously contest the charterer’s claims in the legal process,” Hoegh said adding that “no assurance can be given at this time as to the outcome of the dispute with the charterer of the PGN FSRU Lampung”.

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