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PLN planning to develop 3 LNG receiving terminals

JAKARTA (RambuEnergy) – State electricity company PT Perusahaan Listrik Negara (PLN) is planning to develop three LNG terminals as a move to deliver LNG to its power plants more efficient.

The LNG terminals will be located in North Sumatera, West Java and East Java, Chairani Rachmatullah, head of oil and gas division of PLN said in Jakarta on Tuesday (Nov. 21).

“PLN is currently conducting feasibility study to develop the LNG terminals,” she said at a seminar on Gas and LNG infrastructure.

There has been reservations about PLN’s plan to develop LNG receiving terminal in North Sumatera as that could be a redundancy since there is already an LNG Terminal, called Arun LNG terminal owned by Pertamina.

However, Chairani argues that the LNG terminal would be a complementary to Pertamina’s Arun LNG terminal. PLN wants to develop the LNG terminal on grounds of cost efficiency and reliability.

“We have to spend a lot of money for the gas as the gas is transported for around 400 kilometers from Arun LNG terminal to PLN power plants, therefore the costs are high,” she said.

“The other problem is reliability. When the gas pipeline is in trouble, the electricity system in North Sumatera is in trouble. We cannot have this risks in the future. But Pertamina should not be worried as we are going to still use more LNG,” she said, referring to recent damage of the gas pipeline from Arun LNG that disrupted the whole electricity transmission system in North Sumatera.

The development of the FSRUs, he said, is a move by PLN to anticipate the increasing use of gas in the future . Currently, PLN is developing around 5000 units of gas power plants. (*)

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