About Us | Nusantara Regas

For more than three decades, the country's natural gas reserves processed into LNG have been used to meet export needs. However, the use of natural gas for domestic needs as a substitute for fuel has not been optimized considering the unavailability of LNG receiving terminal infrastructure.

In an effort to answer the challenge, the Minister of SOEs through letter number 5-269/MBU/2008 dated April 21, 2008, then formed a consortium consisting of PT PLN, PT Pertamina, and PT Perusahaan Gas Negara to build and operate the LNG Receiving Terminal.

In its development, PLN decided to withdraw and the discourse on building a Land Based LNG Receiving Terminal was finally reviewed and replaced with a Floating Storage & Regasification Unit (FSRU) which is considered to have advantages including:

The construction period is quite short, which is two years, and uses proven technology.
Avoids potential land acquisition problems.
Licensing does not take long.
More economical compared to Land Based LNG Receiving Terminal.
Easier to control in terms of safety and security because it does not require many facilities on land.
The process of transferring LNG from LNG carriers can be done at sea so it does not require a special dock.
Easy to mobilize to another place when it is no longer needed.
Has a lower environmental impact.

Not only is it expected to be able to overcome the problem of gas supply needs for PLN Power Plants, the establishment of PT Nusantara Regas is also intended to support the diversification of gas supply in Indonesia and ultimately contribute to the development of national energy and the rate of economic growth in the country.

This is also in line with a number of applicable provisions and laws regarding gas management and distribution as stated in:

Oil and Gas Law Number 22 of 2001 concerning Oil and Natural Gas, which stipulates the upstream obligation to provide a domestic gas allocation of 25% of production;
Minister of Energy and Mineral Resources Regulation Number 19 of 2009 concerning Natural Gas Business Activities Through Pipelines, which contains the determination of the trade structure, transmission and distribution of natural gas and its licensing, the provision of special rights and licensing for dedicated downstream pipelines and the determination of the price of natural gas through pipelines;
Minister of Energy and Mineral Resources Regulation Number 3 of 2010 concerning the Amount of Allocation and Utilization of Natural Gas to Fulfill Domestic Needs; and
Presidential Instruction Number 1 of 2010 concerning the Acceleration of the Implementation of National Development Priorities, which contains the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI).

In its development, PLN decided to withdraw and the discourse on the construction of the Land Based LNG Receiving Terminal was finally reviewed and replaced with the Floating Storage & Regasification Unit (FSRU) which is considered to have advantages including:

The construction period is quite short, namely two years and uses proven technology.
Avoids potential land acquisition problems.
Licensing does not take long.
More economical compared to the Land Based LNG Receiving Terminal.
Easier to control in terms of safety and security because it does not require many facilities on land.
The process of transferring LNG from an LNG carrier ship can be done at sea so it does not require a special dock.
Easy to mobilize to another place when it is no longer needed.
Has a lower environmental impact.

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