Indonesia seeks to purchase LNG carriers

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Feb. 3 -- Indonesia’s state-owned PT Pertamina said it will open a bidding round to procure ocean-going vessels to be converted into floating LNG-receiving terminals in East and West Java.

“We expect to hold the bidding by the end of February,” said Pertamina Pres. Director Karen Agustiawan. “There are about two or three vessels that meet our criteria, but I cannot disclose that now,” she said.

Regasification facilities would be constructed aboard the vessels once they are ready, Karen said. “The work will take about 9 months,” she said, adding that the floating LNG terminals would require other facilities, including deepwater pipelines.

“The LNG terminals are expected to be in full operation by September,” said Karen, referring to plans of Pertamina to construct two LNG terminals in West and East Java, each able to store 500 MMcf of gas. She said the facilities would cost $200 million each.

Indonesia has no LNG receiving terminal but is seeking supplies of gas and coal to meet rising domestic demand for power and to reduce consumption of oil as its reserves dwindle and production falls.

Karen said Pertamina would invite selected vessel owners to participate in the joint venture operating the terminals. She said Pertamina “must” hold majority interest in the JV because “we don't want the vessels to be leased; we want to own them."

Pertamina and state gas distributor PT Perusahaan Gas Negara have been ordered by the government to construct the LNG-receiving terminals to help state-owned power utility PT Perusahaan Listrik Negara secure gas supply for its power plants.

The proposed bidding for LNG carriers follows an announcement last month that Pertamina plans to buy 12 small-capacity gas tankers at a cost of $333 million this year, with the order expected to be finalized in 2012-13.

Four of the vessels are to carry LPG, two with a capacity of 3,500 cu m and the two with a capacity of 23,000 cu m. Suhartoko, Pertamina’s senior vice-president of shipping, said a tender for the four vessels was already under way, and “will require a total investment of $128 million.”

Suhartoko said Pertamina was waiting for shareholder approval to procure the remaining eight small-capacity tankers, which he estimated would cost a total of $205 million. He said the ships, all to be used in Indonesian waters, would range from 3,500 to 17,500 dwt.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Woodside delays Browse FLNG development schedule

12/17/2014 Woodside Petroleum Ltd. has reported it expects to enter front-end engineering and design phase for the proposed Browse floating LNG (FLNG) develop...

Woodside to buy Apache’s interests in Wheatstone, Kitimat LNG for $2.75 billion

12/15/2014 Woodside Petroleum Ltd. has agreed to acquire interest in the Wheatstone LNG and Kitimat LNG projects, respectively in Western Australia and Britis...

Watching Government: Russia: On the ropes?

12/15/2014 Russia's Dec. 1 cancellation of its South Stream natural gas pipeline was not surprising. European nations have signaled for years that they intend...

Canada Briefs

12/12/2014

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Magnolia LNG lets EPC contract to SK E&C USA

12/03/2014 Magnolia LNG LLC parent-company Liquefied Natural Gas Ltd. agreed to an engineering, procurement, and construction contract with SK E&C USA cov...

Pipeline leak dampens Atlantic LNG production

12/01/2014 Atlantic LNG (ALNG) reported a 35% reduction in LNG production because of insufficient natural gas supply from Trinidad and Tobago’s National Gas C...

Real-time monitoring improves LNG inventory measurement

12/01/2014 Kogas has improved the calculation method for determining stocks at its LNG terminals, changing from a sampling method to a real-time monitoring sy...

Watching Government: Greece and energy in Europe

11/24/2014 Amid growing energy supply geopolitics, Greece is a stable anchor within a rapidly destabilizing region, Yannis Maniatis, its Environment, Energy, ...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected