PT Perusahaan Gas Negara (PGN), a unit of Indonesia’s Pertamina, has signed a deal to buy liquefied natural gas from compatriot producer Donggi-Senoro LNG.
According to a filling to the stock exchange, PGN and DSLNG have signed an umbrella contract for the purchase of LNG through a master LNG sale and purchase agreement.
The two firms also signed a confirmation memorandum for the purchase of one LNG cargo in September.
PGN said the LNG cargo will have a volume of about 135,000 cbm, equivalent to
3,159,000 MMBtu.
Also, the MSPA will expire on December 31, 2029, and can be extended or terminated earlier according to the agreement of both parties, it said.
“At the time of reporting, the contract between the company and DSLNG will add gas supply from LNG regasification for the West Java, South, and Central Sumatera areas,” PGN said.
DSLNG is a joint venture consisting of Pertamina Hulu Energi (29 percent), Medco LNG Indonesia (11.1 percent) and Sulawesi LNG Development, a JV of Mitsubishi and Kogas (59.9 percent).
The DSLNG plant is located in the province of Central Sulawesi, about 45 km south-east of Luwuk, and consists of a single liquefaction train with a capacity of about 2 mtpa and one 170,000-cbm tank.
It started producing LNG back in 2015 and its customers are Japan’s Jera, Kyushu Electric, and South Korea’s Kogas.
In case the long-term buyers do not take their LNG cargo, then the supplies are available for the spot market.
PGN’s business
On the other hand, PGN operates the Lampung FSRU terminal.
Earlier this year, PGN resolved its dispute with Norwegian FSRU player Hoegh LNG over issues related to the Lampung FSRU charter.
The 2014-built 170,132-cbm FSRU serves a 20-year charter deal with PGN LNG, a unit of PGN, off the southeast coast of Sumatra in Indonesia.
The underutilized 2.7 mtpa facility completed in November last year its 52nd ship-to-ship operation since it started operations in 2014.
Connected to a tower yoke mooring system, the unit delivers gas via a 21 km long offshore pipeline.
The regasified LNG from the FSRU-based facility goes for power generation and industrial users in West Java.
In addition, PGN recently joined forces with PT Likuid Nusantara Gas to develop LNG infrastructure in East Java.
Under the MoU, the two firms have agreed to explore various areas of cooperation, including PGN’s ongoing LNG trading activities to meet domestic gas demand.