PLN, Kellog Brown and Root sign cooperation agreement

State-owned electricity firm PT PLN signed on Wednesday a cooperation agreement with Kellog Brown and Root to carry out feasibility study of gas supply method in relation to the planned development of 54 gas-fired power plants in Papua and Maluku regions.

PLN said in a statement that the agreement also includes engineering design for the required gas infrastructure facilities.

?Through this cooperation agreement, PLN will obtain an optimal engineering design and logistics method, and integrated with the utilization of LNG particularly in the eastern Indonesia. The design forms part of the government?s plan to create virtual pipeline to supply gas to the eastern Indonesia,? PLN said in the statement.

?This is very important because additional capacity of power plants to be fired by gas under the 35,000 MW program is quite large, which is 38 percent or 13,400 MW,? it added.

PLN said that obtaining an efficient and optimum gas supply logistics design is also crucial as the future role of LNG in the country?s energy mix will be quite significant, where LNG consumption will increase by around 300 percent by 2025.

Editing by Reiner Simanjuntak