Indonesia's PGN, PLN Sign LNG Deal

Indonesian state gas distributor Perusahaan Gas Negara (PGN) has signed an agreement with state utility PLN to supply LNG to latter’s 52 power plants, PGN said on October 5 in a statement.

The Indonesian government wants these 52 power plants with combined capacity of about 1.8 GW to run on gas instead of fuel oil. Besides supplying LNG, PGN will also develop infrastructure including jetty, unloading facilities, storage and regasification facilities, gas and LNG transportation, gas pipelines as well as metering regulating system at the associated power plant. PGN said it will use small scale LNG solutions for transportation of LNG from the supply source or connecting facility.

In the first phase, PGN and PLN agreed to carry out the quick win stage at PLTMG Sorong, PLTMG Tanjung Selor, and PLTMG Nias power plants. The quick win stage is targeted at providing a lower price than high speed diesel at the PLN plant gate, PGN said.