PT PLN (Persero) and PT PLN Energi Primer Indonesia (PLN EPI) have signed a memorandum of understanding (MoU) to utilize company-owned land for the construction of gas infrastructure.

This initiative, as explained by PLN Executive Vice President for General Affairs, Arsyadhany Akmala Putri, is part of a strategic effort by both companies to maximize their vast asset portfolio, which includes over 100,000 land parcels spread throughout Indonesia.

“We are committed to supporting the gasification infrastructure development with our extensive assets, ensuring a sustainable energy future,” she stated in a press release, on Monday, July 10, 2024.

The planned infrastructure will include onshore gasification facilities, regasification units (ORUs), and pipelines aimed at supporting gas-powered electricity plants in key regions such as Sulawesi, Maluku, Nusa Tenggara, and Papua.

Rakhmad Dewanto, Director of Oil and Gas at PLN EPI, emphasized that this gasification project is a major milestone in enhancing national energy security.

“We will utilize existing land to build gas infrastructure at 22 strategic points,” he said, on Monday, July 10, 2024.

The project aims to replace fuel with liquefied natural gas (LNG) as a power generation source, reducing operational costs and significantly lowering emissions, which contributes to Indonesia's clean energy transition.

In addition to environmental benefits, this collaboration will support local industrial development, particularly in Sulawesi, a hub for smelting and refining activities. “We are optimistic that this collaboration will serve as a successful business model for the future,” Rakhmad added, on Monday, July 10, 2024.