PLN to announce winning bidder of LNG infrastructure project in March

By Godang Sitompul

Petromindo

State-owned electricity firm PT PLN hopes to be able to announce the winning bidder of planned LNG infrastructure project in central part of Indonesia in March or April of next year.

Head of Fuel and Gas Division of PLN, Chairani Rachmatullah told Petromindo.com on Thursday that a consortium comprising of state-owned oil and gas firm PT Pertamina, IDX-listed gas distribution firm PT PGN Tbk, and French Engie is expected to submit its commercial proposal by February of 2018, to be followed with evaluation process by PLN. ?We expect the award in March-April 2018,? she said, but did not provide further details.

As has been previously reported by this portal, the aforementioned consortium was the only bidder which qualified to enter the second stage of the tender process (commercial bid) of the project. President Director of PGN LNG Indonesia, a subsidiary of PGN Tbk, Mugiono said mid-November that the consortium is optimistic to be able to win the project.

PLN Director of Strategic Procurement 2, Supangkat Iwan Santoso said on November 15 that the winning bidder was expected to be announced ?within a month.? But on December 3, he said that PLN was reviewing the second-round tender (commercial stage) as only one company participated, with possibility of repeating the process.

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.

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.

Editing by Reiner Simanjuntak