PLN signs marine CNG technology implementation deal
Tuesday, January 31 2012 - 08:24 AM WIB
The pilot project will be conducted in low scale, with an aim to transport between 3 and 6 million cubic feet per day of CNG from PLN loading terminal in Gresik to its off-loading facility in Lombok.
Under the contract, RINA will study the most appropriate type of vehicle, logistical pattern, design of the compression and decompression terminals, and documents for EPC tender for construction of the Marine CNG facilities.
RINA has developed rules and guidelines for the exploitation, transport and storage of compressed natural gas (CNG Guidelines), taking into account economic, technical and safety reasons.
It is expected the EPC contract will be open for tender in May of this year and delivery of CNG by sea will commence in August 2013.
The Marine CNG facility with a capacity of 6 million cubic feet will serve as a source of gas supply for Peaking power plant in Lombok, which generates 100 megawatts. The gas consumption will substitute 51 million liters of diesel fuel consumption per year, therefore saving Rp 200 billion off PLN spending annually.
If the pilot project succeeds, the Marine CNG technology, the first in the world, will be applied in other power plants with similar or bigger capacity across the country.
The technology is part of PLN moves to save fuel spending and overcome fuel scarcity facing its power plants.
PLN has mapped out utilization of CNG in western and eastern parts of Indonesia. CNG will come from low capacity gas wells, marginal gas wells, gas flare and surplus of gas supply as a result of fluctuating gas absorption pattern.
Editing by Dadan Wijaksana