PLN to tender CNG transportation project this month

State power utility PT Perusahaan Listrik Negara (PLN) was set to open a tender on marine compressed natural gas (CNG) transportation from East Java to West Nusa Tenggara later this month, an executive said on Saturday.

The tender winner is expected to transport between three and six million standard cubic feet per day (mmscfd) of CNG from the Terang Sirasun Batur field off East Java to a power plant in Lombok, West Nusa Tenggara starting from 2014.

“Considering that this is a pilot project, we need to achieve success. The tender is expected to start by the end of August or early September,” told PLN’s division head for oil-based fuels and gas, Suryadi Mardjoeki, to kontan.co.id.

The tender participants, he said, would be offered three business schemes, namely, build and operate on their own (BOO), build-operate transfer (BOT), and equity sharing with PLN.

Prior to the tender, PLN had signed an agreement with Italian consulting company RINA in January to design a CNG shipment system for the route.

Marjoeki estimated that the CNG project will help PLN slash fuel consumption by 51 million liters and cut costs by Rp 200 billion (US$200 billion) per year. (yps)