JAKARTA: PT Nusantara Regas LNG Carrier tender worth of US$180.67 million is considered to violate the Shipping Law.The company as the joint venture between Perusahaan Gas Negara (PGN) and PT Pertamina also has violated Government Regulation No 22/2011 and Industry Ministry Regulation KM 48/2011, Chairman of Indonesian National Shipowners Association (INSA) Johnson W. Sutjipto said.Such violation was indicated with the tender implementation that only invited foreign LNG carrier operators from Japan, Malaysia, Norway and other European Countries without inviting local operators.Nusantara Regas should held tender use of Indonesian flag carrier to ensure availability of national fleet.If there is no Indonesian flag carrier that participated in the auction when the tender started then the foreign carrier that won the tender could propose permit, he said.Up to now, INSA is still monitoring the implementation of several carrier tender conducted by contractor cooperation contracts (PSC) as partner of The Upstream Oil and Gas Executive Agency (BP Migas).He also requested the Transport Ministry to conduct tight supervision on every carrier tender won by foreign carrier by tightly verifying operators proposed operation permit.Surya Hadi, owner of PT Berlian Laju Tanker Tbk, assessed that Nusantara Regas violates several applicable regulation.Other violated regulations are Government Regulation No 22/2011 on Water Transport article 1 and 2, and Industry Ministry Regulation KM 48/2011 article 1 and 2, he said when attending Cabotage Principle Implementation held by Association of Retired Navy, last week.According to Surya, Law No 17/2008 regulates the activity of sea transportation in the country to be conducted by national marine transportation companies using Indonesian flag carrier manned by Indonesian citizens.Foreign carrier is also prohibited to transport passengers and goods inter-island or among ports in Indonesian waters. The foreign carrier tender has been regulated with Industry Ministry Regulation KM 48/2011, he said.Nusantara Regas violates Industry Ministry Regulation since it didnt conduct tender for national carrier.Not readyMeanwhile, PT Pertaminas Corporate Secretary Harry Karyuliarto who also controlled 60% stake in Nusantara Regas, said national companies werent invited in the tender since their carrier didnt meet the specification.So far only PT Humpuss Intermoda Transportasi Tbk that owned LNG carrier but its being leased to other company, which means not single one of national company is ready to participate.Nusantara Regas currently held a leasing tender of LNG carrier type that is expected to be available by December 2011 with 11 years contract duration. The tender participants come from Japan, Malaysia, Norway and Europe.The company wanting LNG carrier with 125.000 m3-137.000 m3 capacities and such leasing is needed to fulfill LNG floating recipient plant in gulf of Jakarta for Tanjung Priok and Muara Karang.Volume needed is around 400 Billion British Thermal Unit per day that expected to be on-stream in January 2012 with temporary supply of LNG from Bontang around 200 BBtud. (t06/msw)

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