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No firm gas deal with Singapore, for now
After public uproar met an earlier idea of “importing” gas from Singapore to fuel future power plants in Riau Islands, an agreement between state-owned electricity firm PLN and two Singaporean energy companies has come to light.
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In progress: Workers repair household electricity networks in Malang, East Java, on Aug.28. (Antara/Bowo Sucipto)
After public uproar met an earlier idea of “importing” gas from Singapore to fuel future power plants in Riau Islands, an agreement between state-owned electricity firm PLN and two Singaporean energy companies has come to light.
PLN and Keppel Offshore & Marine, as well as Pavilion Energy, signed heads of agreement (HoA) last Thursday at the Istana in Singapore to conduct a sixmonth study for the development of liquefied natural gas (LNG) storage and regasification facilities for PLN’s gas.
The projects would support the operations of future power plants in Tanjung Pinang and Natuna, both in Riau Islands. Currently, Natuna is dependent on diesel-fueled power plants with 8 megawatts (MW) of capacity, while Tanjung Pinang procures its electricity from neighboring Batam using submarine power cables.
PLN regional business director for Central Java Amir Rosidin, who signed the HoA in Singapore, said the study to provide gas for the generation of almost 200 megawatts (MW) of power was essential as PLN was planning on developing gas power plants in the two
regions. “While Natuna already has a reserve margin of 4 MW, we need to think ahead and stop relying on the existing diesel-fueled power plants. Tanjung Pinang has also been developing as a tourist destination with its 70 MW of electricity from Batam, but it cannot rely on just one source,” he said on Monday.
The study, which is expected to conclude in April, will review the transportation and distribution of around 10 million British thermal units of gas (mmbtu) per day in the first phase, before increasing to around 40 mmbtu.
The gas will be sourced from one of PLN’s undisclosed contracts and the study will examine whether it is more efficient than existing costs. Amir noted that diesel for Natuna’s power plants could reach a hefty Rp 2,500 (19 US cents) per kilowatt hour (kWh).
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No firm gas deal with Singapore, for now
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