Indonesian gas utility company PT Perusahaan Gas Negara (PGN), a unit of state-owned Pertamina, is looking to lease a floating storage unit (FSU) for liquefied natural gas (LNG), industry sources said.
The utility, in a tender issued in July and closing on Aug. 14, is looking for an FSU with a capacity of above 26,500 cubic metres, a PGN official told Reuters, declining to be named as he was not authorised to speak with media.
“It’s related to the project in East Java (Teluk Lamong),” he said.
PGN, in cooperation with state port companies, is building the small terminal known as the Teluk Lamong LNG terminal for LNG distribution in East Java, which was expected to start by end of this year, the company had said in March.
It is expected to source gas from the domestic fields such as Bontang or Tangguh or could look to imports if domestic gas supply dwindles, sources have said. (Reporting by Jessica Jaganathan in SINGAPORE and Wilda Asmarini in JAKARTA; Editing by Tom Hogue)