Pelindo III, PEL sign cooperation agreement on Benoa LNG terminal

State-owned port operator PT Pelindo III and its subsidiary PT Pelindo Energi Logistik (PEL) had on Monday signed a port services and location agreement for the latter?s LNG terminal at the Benoa port in Bali.

The agreement was signed by Pelindo III Director for Business Development Rahmat Satria, Benoa Port General Manager Ali Sodikin, and PEL President Director Denny Hermanto, Pelindo III said in a statement obtained Wednesday.

The Benoa LNG terminal, which is expected to start operation next month, will deliver 40 mmscfd of gas, sourced from the Bontang LNG plant in East Kalimantan, to the 200 MW PLTDG Pesanggaran diesel and gas power plant owned by PT Indonesia Power, a subsidiary of state owned electricity firm PT Perusahaan Listrik Negara (PLN).

PEL has appointed IDX-listed energy transporter PT Humpuss Intermodal Transport Tbk?s subsidiary PT Humpuss Transportasi Kimia (HTK) to transport the LNG from Bontang LNG plant to the Benoa LNG terminal under a seven-year contract.

Meanwhile, Denny said in the statement that following the operation of the Benoa LNG terminal, PEL will develop similar project in other areas including in Celukan Bawang, Bali, and Makassar, South Sulawesi. As has been reported by this portal in February, PEL said that the Celukan Bawang LNG terminal, which is currently under construction, is expected to start operation in the fourth quarter of this year.

Editing by Reiner Simanjuntak