Pelindo signs contract with JSK for LNG Terminal in Bali
Friday, January 22 2016 - 10:40 AM WIB
PT Pelindo Energi Logistik (PEL), an affiliate of state owned port operator PT Pelabuhan Indonesia (Pelindo) III, signed on Friday a contract with Jaya Samudera Karunia Group (JSK Group) to provide Floating Regasification Unit (FRU) and Floating Storage Unit (FSU) for a mini-scale LNG terminal in Benoa, Bali owned by PEL.
The Benoa LNG terminal will be built to provide gas at a volume of 40 mmscfd for a 200-MW diesel and gas power plant in Pesanggaran, Bali owned by PT Indonesia Power, a subsidiary of state owned electricity firm PT Perusahaan Listrik Negara (PLN).
?Indonesia will have a mini-scale LNG terminal in the near future, that is Benoa LNG terminal,? PEL?s President Director Denny Hermanto said, adding that the LNG will be sourced from the Bontang LNG plant in East Kalimantan.
The LNG terminal will built on the property owned by PT Pelindo III and will be operated by PEL, Denny said, adding that PEL has signed a contract worth US$500 million with Indonesia Power to deliver gas to the so-called PLTDG Pesanggaran power plant.
?The existence of the terminal is in line with the Nawacita program of the Joko Widodo government, which aims to increase productivities by improving efficiencies in logistical costs and strategic infrastructures,? he said.
He explained the LNG terminal will be built floating at water area and JSK Group has designed special FRU and FSU for the terminal. JSK Group is a pioneer in making concepts of such facilities in Indonesia.
He said PEL deliberately chose to build the terminal offshore rather onshore because a floating LNG terminal is faster to build than a land-based one as land preparation is often time consuming.
JSK Group CEO Dennis SK said he expected the floating LNG terminal could be become a model for the development of such facilities elsewhere in Indonesia and the best solution for the Indonesian government to realize its 35,000 MW program in particular.
?JSK Group through subsidiaries PT Benoa Gas Terminal and PT JSK Abadi Lines has spent no less than $100 million to procure the FRU and FSU. Both are built in South Korea,? Dennis said, adding that the FRU has a capacity of 50 mmscfd, while the FSU has a capacity of 26,000 CBM.
He said if all diesel power plants in Indonesia use gas rather than diesel oil, the government can cut its fuel subsidy significantly. Furthermore, gas is cleaner than diesel oil.
Editing by Johannes Simbolon