PLN refuses to receive LNG cargo in Bali, demands lower price

By Febry silaban

Petromindo|Lucky

PT Indonesia Power, a unit of state-owned electricity firm PT PLN refuses to receive one small cargo of LNG from PT Pelindo Energi Logistik, which operates a mini LNG receiving terminal in Benoa, Bali, demanding the supplier to cut price by 30 percent.

The refusal has caused LNG vessel Triputra, which is owned by IDX-listed shipping firm PT Humpuss Intermoda Tbk, unable to unload the cargo to PEL, and has been anchoring in Benoa water since June 26, 2017.

Indonesia Power Director Eri Prabowo confirmed the delay in unloading the LNG cargo, saying that the reason for the delay is due to unconcluded negotiation on gas price between PLN on one side, and PEL and Humpuss on the other side.

Humpuss CEO Theo Lekatompessy told Petromindo earlier that PLN was asking for price reduction of 30 percent for the cargo, which was agreed last year. Sources said that PLN last year agreed to pay US$12 dollar per mmbtu at Indonesia Power?s gate in Benoa.

A PLN official told Petromindo that Indonesia Power will switch from gas to diesel fuel if its price demand is not fulfilled.

The 22,500 cubic meters LNG cargo transported by Triputra is the first LNG cargo from Jangkrik field operated by Italian firm Eni SpA processed at Bontang LNG plant. The spot cargo was bought by Pertamina, which has a contract to supply 6 small cargoes to PEL in six months, Pertamina LNG Marketing VP Didik Sasongko Widi told Petromindo.Com.

Another Petromindo source said PLN felt that PEL has charged too much for its midstream service.

Benoa LNG terminal is contracted to supply 40 MMSCFD of gas to the 200 MW diesel and gas power plant in Pesanggaran, Bali operated by Indonesia Power. The terminal, which is operated by PEL, a subsidiary of PT Pelabuhan Indonesia (Pelindo) III, has been in operation since April 2016. PEL has appointed Humpuss to transport LNG from Bontang to the Benoa LNG terminal under a seven-year contract.

Editing by Reiner Simanjuntak