JAKARTA (RambuEnergy) – State electricity company PT Perusahaan Listrik Negara (PLN) said it will auction five mini liquefied natural gas (LNG) regasification facilities this year as well as LNG vessel and storages.
Director for Strategic Procurement of PLN Supangkat Iwan Santoso said the mini LNG facilities will be built in five clusters on the island of Papua (West Papua). LNG from these facilities will be then delivered to gas-power plants (PLTGU) to built in the surrounding areas.
“The auctions that will be done is for LNG vessel, transportation, storage and regasification,” Supangkat said, as quoted by Kontan.
He said the LNG price is expected to be set below US$4 per MMBTU.
In addition, PLN will announce the result of auctions for LNG vessel, storage and regasification and mini LNG facility in Gorontalo, Sulawesi Island, Bangka Belitung and Pontianak.
Indonesia is on course to become a net importer of LNG by the end of this decade. National oil company Pertamina expects national LNG demand to increase to 12 million tons per annum (mta) by 2019-2020 and is looking to secure 6.1 mta from the international market.
Indonesia currently operates three major LNG facilities — onshore Arun LNG terminal, a floating storage and regasification unit (FSRU) in north Jakarta (FSRU West Java) operated by Nusantara Regas and an FSRU in Lampung owned b PGN.
Given Indonesia is an archipelagic nation, the government also is developing mid- and small-scale LNG distribution as a solution to the country’s growing energy needs. PLN has launched a mini-LNG facilities that will be built in several locations across the country.
In addition, Pertamina has opened tender for the development of a third land-based FSRU, to be built in Cilacap in Central Java and also mulls a plan to develop fourth FSRU in Cilamaya in West Java. (*)