KIORCC Joins a Focus Group Discussion for the Reutilization of Offshore Platforms as LNG Infrastructure

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13 April 2023 – The Sepuluh Nopember Institute of Technology (ITS) hosted an online Zoom Focus Group Discussion (FGD) on the reutilization of aging offshore platforms for LNG infrastructure.

The FGD, attended by personnel from SKK Migas, PLN group, Pertamina group, and also players in the private sector and shipyards within the industry.

This meeting highlighted that the Rig-to-LNG method is one of the most cost-attractive methods of platform reutilization, while also helping meet the gas demands of the country. It was informed that Sumatra, Riau, West Java and Central Java has a potential market opportunity for the Rig-to-LNG terminal project.

ITS is currently investigating structural integrity analysis that could gain interest from both government and private sectors to realize.

As the project plan becomes firmer, and the engineering deemed capable, the next obstacles in question are the regulations and funding. Platforms built in Indonesian waters before 1994 do not have an ASR fund, therefore making decommissioning projects unattainable. These issues are currently being discussed by SKK Migas.

During this FGD, KIORCC managed to present the lessons learned from the Pilot Project on the Rig-to-Reef Re-utilization of platform Attaka-EB, which was concluded in November 2022. It was shared that the project faced certain issues which included difficult communication between stakeholders, permit mishaps, and write-off of assets which ultimately managed to be resolved.

This project’s potential opens up the opportunity for Indonesian and Korean stakeholders to contribute with their respective strengths. The gas business in Indonesia is in the uptrend line considering the increasing need for alternative energy and LNG supply. Potential stakeholders are excited to carry out this Rig-to-LNG project and hope to collaborate to materialize the concept.