Pertamina, PLN to develop LNG infrastructure in eastern region
Thursday, October 27 2011 - 07:11 AM WIB
The MoU covers an agreement between PT Pertagas Niaga, a subsidiary of Pertamina, and PT PLN to supply gas from LNG regasification facilities to PLN's power plants in eastern region.
Both parties also agreed to set up a joint venture company between their respective subsidiaries -- PT Pertamina Gas (Pertagas) and PT Indonesia Power (IP).
Pertamina and PLN said that the sales and purchase of gas will be handled by PT Pertagas Niaga, a subsidiary of Pertagas, and PLN.
Meanwhile, the party which is responsible for transporting and regasifying LNG will be a joint venture firm that will be established by PT Pertagas and Indonesia Power.
The MoU was signed by PLN?s Director for Primary Energy Nur Pamudji, Pertagas President Director Gunung Sardjono Hadi, President Director of PT Pertagas Niaga Harjana Kodiyat and Director for Production of Indonesia Power Mustiko Bawono.
Pertamina is developing 11 small LNG receiving terminals in eastern Indonesia, which are expected to commence operation in the third quarter of 2013. The LNG receiving terminals will be located in Bontang, Samarinda (two areas -- Tanjung Batu and Samberah), Batakan, Balikpapan, Pesanggaran, Tello, Jeneponto, Pomala, Minahasa and Halmahera.
Pertamina and PLN said in a joint statement that those 11 small LNG receiving terminals will require 0.93 million tons per annum (MTPA) of gas for 10 years. The gas will be transported with most economic transportation means, including small LNG vessels, depending on the location of the LNG receiving terminal.
Indonesia gas demand is expected to double in 2020, with average annual growth of 6-8 percent per annum, driven by rising gas demand from power, industry and fertilizer industries.
In the joint statement, Pertamina and PLN also agreed to revitalize LNG infrastructure in Aceh. No further details were given.(giok)