Pertagas Niaga to supply LNG to Bali

PT Pertagas Niaga, a subsidiary of state owned oil and gas firm PT Pertamina, announced on Wednesday it will supply LNG for the power plant in Bali owned by PT Indonesia Power starting in 2019.

The Heads of Agreement (HoA) for the LNG supply was signed by Pertagas Niaga?s President Director Jugi Prajugio and Indonesia Power?s President Director Supangkat Iwan Santoso on Wednesday in Jakarta.

Under the HoA, Pertagas Niaga will supply a total of 3.36 million tons of LNG over a period of 2019-2035 for the Pesanggrahan power plant.

Pertagas Niaga will build a Land Storage Regassification Unit (LSRU) in Benoa port for the purpose. The LNG will be sourced from Mahakam PSC in East Kalimantan or other sources at home and overseas. The firm will also be repsonsible for the transportation of the LNG and the development of mid-stream infrastructures to deliver the LNG to Indonesia Power?s plant gate.

The LSRU is designed with the storage capacity of 24,000 cubic meters of gas and witht the supply capacity of 50 mmscfd. It will be delivered through a 3 km, 12-inch pipeline to the delivery point in Pesanggrahan.

The LNG supply is expected to ensure the availability of power for Bali and surrounding areas, the firm said.

Editing by Johannes Simbolon