PLN needs 70 cargoes of LNG through 2025
Thursday, June 23 2016 - 01:52 AM WIB
State owned electricity firm PT Perusahaan Listrik Negara (PLN) (Persero) projects the LNG demand of the country?s power plants will reach 75 cargoes through 2025.
PLN?s Procurement Director Supangkat Iwan Santoso said the firm already has contracts with the Tangguh and Bontang LNG plants. ?In case the supplies from both plants are not adequate, we shall import,? he said.
Supangkat said the purchasing of LNG will be centralized at PLN meaning the state company will not only buy the LNG for its power plants but also for those owned by Independent Power Producers with whom PLN has or will sign Power Purchasing Agreements (PPA). Under the PPA, fuel costs are to be shouldered by PLN. As such, the state firm has right to buy the fuel by itself or decide where the IPP should buy the fuel.
?If we buy (LNG) in bulks, our bargaining position will be strong,? Supangkat said.
The Ministry of Energy and Mineral Resources projects the gas demand of Indonesian power plants will reach 8,297 bcf until 2025. The amount consists of 4,149 bcf of pipelined gas and 4,148 bcf of LNG.
Editing by Johannes Simbolon