Indonesia, South Korea agree to boost cooperation in energy sector

During the Indonesia-Korea Joint Working Group on Energy Meeting in Jakarta on Monday, delegates from both countries agreed that a closer cooperation in the energy sector would bring a lot of benefits to both countries, the Ministry of Energy and Mineral Resources said in a statement on Tuesday.

The South Korean delegation, which was led by South Korea’s Minister of Commerce, Industry and Energy Kim Young-ju, includes top executives from Korea Chamber of Commerce and Industry, Korean National Oil Corporation, SK Corporation, Korea Hydro & Nuclear Power Co., Korea Oil National Corporation, STX Energy Co. Ltd, KEPCO, Kenertec Co. Ltd, Korea Gas Co, Korea Energy Economics Institute, POSCO Engineering & Construction Co., E1 Corporation, Sam-tan Co. Ltd.

The meeting identified seven projects potential for cooperation. The projects are combined cycle power plant project in Bojonegara, Banten; coal liquefaction project; oil and gas exploration and production project; nuclear power plant project; mine mouth coal fired power plant project in South Sumatra; natural gas exploration and production project; LPG plant project in South Sumatra.

With regards coal liquefaction project, Korea Energy Technology (Kenertec) said during the meeting that it was looking forward to license its technology for direct coal liquefaction to PT Nuansa which operates a huge coal mine in East Kalimantan. The company with Posco also considered participating in the construction of railway for coal transportation to support the coal mining project.

With regards the mine-mouth coal fired power plant project in Lingga, Kebon Agung district, Muara Enim Regency, South Sumatra, the meeting agreed that the construction of the 4X100 MW power plant should be successful. The power plant, which will get coal supplies from nearby mines, is being developed by Hanwa Engineering & Construction Corp, Korean Western Power and Raja Wali Koreasia at an estimated cost of US$450 million.

With regards the LPG plant project, the meeting was informed about the intention of state owned oil and gas company PT Pertamina and South Korea’s firm Energy First to jointly develop the project. They plan to sign a memorandum of understanding on the project during the planned visit of President Susilo Bambang Yudhoyono to South Korea next year.

With regards natural gas exploration and production project, KOGAS voiced its interest during the meeting to develop an LNG terminal and gas exploration and development projects in Indonesia.

On Tuesday, Minister of Energy and Mineral Resources Purnomo Yusgiantoro and his South Korean counterpart witnessed the signing of a memorandum of understanding between Pertamina and KNOC and SK Corp for a collaboration in exploring and developing oil and gas in Indonesia and other countries. (Godang)