PLN reviews ongoing tender of LNG infrastructure project
Monday, December 4 2017 - 11:37 AM WIB
Petromindo
State-owned electricity firm PT PLN is currently in the process of reviewing the ongoing second-round tender of LNG infrastructure project in central part of Indonesia, with possibility of repeating the process.
PLN Director of Strategic Procurement 2, Supangkat Iwan Santoso was quoted by news portal kontan.co.id as saying on Monday that the review was made as only one consortium, comprising of state-owned oil and gas firm PT Pertamina, PT PGN LNG Indonesia (a subsidiary of IDX-listed gas distribution firm PT PGN Tbk), and French Engie, which manages to enter the second-round commercial bidding stage.
Supangkat said that PLN prefers to have more than one bidder in the second-round stage to help obtain competitive price. He said that the review may result in repeating the tender process. ?The tender must be competitive. How will it be competitive if there?s only one bidder,? he said.
Supangkat said on November 15, that PLN was set to announce the winning bidder ?within a month.?
PGN LNG Indonesia President Director Mugiono told Kontan that the consortium is confident that the tender process will proceed and that the consortium will win the bid for the LNG infrastructure project.
The three companies have around 30 percent stake in the consortium, with Pertamina having a slightly higher stake.
Mugiono said previously that the estimated US$1 billion LNG infrastructure project will include the construction of a floating storage and regasification unit (FSRU), receiving terminal, and the operation of vessels to transport gas connecting ten locations in the central part of the country including Kalimantan, Sulawesi, and West Nusa Tenggara.
?There will be one FSRU, two LNG feeder vessels, and small LNG vessels moving around the clusters. There will be two clusters, that?s why there will be two LNG feeders,? he said last month.
Total gas requirement is estimated at 150 mmscfd, to be supplied from domestic sources, he said, adding that if future supply at home declines, Pertamina will ensure the supply. (*)