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Jakarta Post

Indonesia's PGN eyes LNG projects in Bangka Belitung, Pontianak and Nias

Viriya P. Singgih (The Jakarta Post)
Jakarta
Sat, June 24, 2017

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Indonesia's PGN eyes LNG projects in Bangka Belitung, Pontianak and Nias Tied up: A number of workers stand on the wharf of a liquefied natural gas (LNG) terminal in Benoa Harbor in Denpasar, Bali, recently. (JP/Zul Trio Anggono)

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tate-owned gas company PGN expects it can win this year a tender to build and operate liquefied natural gas (LNG) infrastructure in Bangka Belitung, Pontianak and Nias in a bid to strengthen its grip on the downstream sector in the country.

The winner of the tender, offered by state-owned electricity firm PLN, is expected to build LNG vessels, jetties and the topside works, LNG storage facilities and regasification facilities to supply fuel gas for six power plants in those three regions with capacities ranging from 25 megawatts (MW) to 100 MW of electricity each.

For the operation and maintenance of the facilities, the awarded contractor will team up with PLN’s subsidiary to establish a special purpose company (SPC).

“We already have a floating storage and regasification unit [FSRU] in Lampung. So, if we win the tender, we can use that facility to store and distribute the LNG to Pontianak, Bangka Belitung and Nias,” PGN president director Jobi Triananda Hasjim said recently in Jakarta.

PGN’s Lampung FSRU has the capacity to store up to 170,000 cubic meters of LNG and regasify 240 million standard cubic feet per day (mmscfd).

Separately, PLN procurement director Supangkat Iwan Santoso said the tender’s winner would be announced in September so that the development of the LNG infrastructure could be completed by the end of 2018.

Iwan expects that the toll fee for the gas will be below US$4 per million British thermal units (mmbtu). “That way, we can still maintain the competitiveness of the gas price,” he told The Jakarta Post. (dmr)

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