Friday, February 23, 2024

Formation of PLN’s Midstream LNG Joint Venture Enters Auction Phase

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Audina Nur




PT PLN Energi Primer Indonesia (PLN EPI) is set to establish a joint venture company to build and operate midstream LNG infrastructure as part of the company’s power plant gasification program. Mamit Setiawan, Corporate Secretary of PLN EPI, revealed that the company is currently conducting auctions to select potential partners. “In each cluster, PLN EPI will partner with one selected partner, which could be a single company or a consortium consisting of multiple companies,” said Mamit when contacted on Friday (9/2/2024).

The gasification project or midstream LNG infrastructure will be divided into four clusters or regions, namely Nias, North Papua, Sulawesi-Maluku, and Nusa Tenggara. The total power to be converted is approximately 2,278 megawatts (MW), requiring a gas supply of 151 billion British thermal units per day (BBtud), equivalent to 18 standard LNG cargoes annually. Through this program, PLN aims to reduce the use of fuel oil by around 1.7 million kiloliters per year.

“PLN EPI, together with selected partners, will be responsible for the design, financing, construction, and operation of midstream LNG infrastructure, including floating/onshore regasification terminals and LNG transport vessels,” he said. Previously, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) allocated about 76 cargoes of liquefied natural gas (LNG) to PT Perusahaan Listrik Negara (Persero) or PLN. The plan is to allocate around 18 cargoes, equivalent to 151 BBtud of gas, to support PLN’s gasification program powered by diesel fuel oil.

“These 76 cargoes are sourced from Tangguh and Bontang, and are expected to meet PLN’s needs, including for the gasification program, with management handled by PLN EPI,” said Deputy for Finance and Commercialization of SKK Migas, Kurnia Chairi.

Audina Nur






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