Indonesia’s PGN, KAI to trial LNG delivery by rail

Indonesian state-owned gas firm PT Perusahaan Gas Negara (PGN), a unit of Pertamina, is working on delivering LNG by rail.

In that regard, PGN has joined forces with compatriot railway operator, PT Kereta Api Indonesia (KAI), to conduct trail LNG deliveries.

The duo signed a heads of agreement to cooperate in providing natural gas solutions and rail-based transportation/logistics, according to a KAI statement.

In order to prepare for LNG transportation by train, KAI would map rail transportation routes, data on facilities and infrastructure needs, and loading and unloading methods, it said in the statement.

On the other side, PGN would work on customer demand, and analyze and recommend infrastructure needs along the LNG distribution chain, the statement said.

KAI did not provide further information but the duo would probably transport LNG in ISO containers.

Previously, PGN LNG, a unit of PGN, and KAI have also revealed plans to work on LNG-powered locomotives.

PGN LNG operates the 2 mtpa Lampung floating LNG import facility off the southeast coast of Sumatra.

Hoegh’s Lampung FSRU, which serves the facility, has earlier this year completed its thirtieth ship-to-ship LNG transfer since 2014.

In addition to the FSRU, PGN is building a small-scale regasification terminal at the Teluk Lamong port in East Java.

The project will have about 0.3 mtpa of regasification capacity and should start in 2021, according to GIIGNL.

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