SembCorp, Keppel propose gas swap arrangement
Wednesday, March 22 2017 - 03:53 AM WIB
Petromindo
Singapore?s Sembawang Corp and Keppel Corp have proposed a gas swap deal to the Indonesian Ministry of Energy and Mineral Resources, under which the two companies will supply gas from their facilities in Singapore to state-owned electricity firm PT PLN in return for gas supply from Bontang LNG plant in East Kalimantan.
According to the proposal, the gas from Singapore will be used by PLN to replace diesel fuel at its power plants particularly in Sumatra.
As part of the plan, the two companies, which operate gas storage facilities in Singapore, have also proposed cooperation to develop a virtual gas pipeline.
?SembCorp and Keppel yesterday offered cooperation to develop virtual pipeline at the western side because they have storage in Singapore and they can supply gas for power plants (currently run on) fuel oil. Our gas from the Bontang plant will be swapped (with gas from) Singapore. That?s their proposal,? said Director General of Oil and Gas at the ministry, IGN Wiratmaja Puja on Tuesday to Petromnido.com.
He said that the two Singapore firms will later hold business-to-business negotiation with PLN for the proposed gas swap arrangement. The government will then evaluate the outcome of the negotiation, he added.
Editing by Reiner Simanjuntak