RI can still cancel LNG swap plan with Spore: Luhut
The Jakarta Post
Amid public uproar over an earlier idea of "importing" gas from Singapore to fuel power plants in Riau Islands, Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan has reassured the public that the policy is subject to change.
Luhut clarified that Indonesia would not import gas from Singapore, but would explore liquefied natural gas (LNG) swap deal between state electricity company PT Perusahaan Listrik Negara (PLN) and Singaporean companies -- Keppel Offshore and Marine and Pavilion Energy.
A head of agreement (HoA) was signed between the parties during the visit of President Joko "Jokowi" Widodo to Singapore on Sept 7, but it was just intended for a six-month feasibility study, Luhut said on Wednesday.
“If no agreeable price has been sealed within that six months, we can cancel it,” Luhut said.
The annulment would not break the agreement since nothing had been agreed upon after all, he added.
“I will also say once again that the deal contains nothing about LNG purchases. Singapore has facilities that can transport LNG to small plants at distant places [in Indonesia], whereas the gas come from us,” Luhut remarked.
Coordinating maritime affairs deputy minister on infrastructure Ridwan Djamaludin said that LNG swap with Singapore might actually help industries obtain LNG at more competitive price.
“Most of Indonesia’s gas sources are in the far east side of the country, therefore making it costly to ship to western regions,” Ridwan said.
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