Power producer, PT Perusahaan Listrik Negara, needs more than 400 trillion British Thermal Unit of liquid natural gas in this year - Photo by the Company

JAKARTA (TheInsiderStories) – Power producer, PT Perusahaan Listrik Negara (PLN), needs more than 400 trillion British Thermal Unit (TBTU) of liquefied natural gas (LNG) in this year, said the director last week. Based on the draft of Electricity Supply Business Plan for 2020 – 2029, the gas demand for the power plants is estimating to reaches 800 TBTU.

The director, Rudy Hendra Prastowo, said based on the energy mix program to reach 23 percent in 2025, the state-owned firm needs around 939 TBTU of LNG. To fulfill the needs, the company has a long-term LNG supply contract with the partners to deliver 20 cargoes per year and can be increases up to 60 cargoes starting 2021 until 2035.

So far, the national LNG production still relies on two refineries from Bontang and Tangguh LNG Plant. According to Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas), gas lifting of the Bontang is estimating around 77.74 cargoes.

Last year, PLN and gas producer owned by the government, PT Perusahaan Gas Negara Tbk (IDX: PGAS), has signed an agreement to supply LNG and develop infrastructure for 52 power plant of the utility firm, including jetty and unloading facilities. The CEO of PGAS, Suko Hartono, said the power plants was estimated will generating capacity of around 1.8 giga watts.

In the same year, INPEX Masela, Ltd., the operator of Masela block, has signed a long-term supply gas deal with PLN and fertilizer firm, PT Pupuk Indonesia. The sales and purchase agreements for the long-term LNG and natural gas supply, including LNG to natural gas-fired power plants operated by PLN and natural gas (150 million standard cubic feet per day) to a coproduction plant, which Pupuk Indonesia plans to construct.

In addition, the director general at the ministry of energy and mineral resources (MEMR), Rida Mulyana, revealed this project was implemented to improve the trade balance and to support the energy conversion program from fuel to natural gas.

“The benefit for both parties is realizing the cheaper gas compared to HSD (high speed diesel),” he said by adding the initial stage, Perusahaan Gas Negara will carry out the LNG for natural gas-fired power plant in Sorong, Tanjung Selor, and Nias Island.

Written by Editorial Staff, Email: theinsiderstories@gmail.com