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Government partners with Pertamina in Badak LNG plant
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Workers carry out activities at the Badak liquefied natural gas plant in Bontang, East Kalimantan. (Courtesy of/badaklng.co.id)
T
he government has appointed state energy holding company Pertamina to partner with the State Asset Management Agency (LMAN) to manage the Badak liquefied natural gas (LNG) plant in Bontang, East Kalimantan.
LMAN is a public service agency under the Finance Ministry. The agency is the sole-owner of Badak LNG plant, which is operated by PT Badak NGL. With the new partnership, Pertamina will take over the Badak LGN plant business from LMAN.
LMAN president director Rahayu Puspasari said the transfer was needed so that the business losses could not be claimed as state losses. “The measure aimed to share the risk,” she told the press after the announcement on Friday.
PT Badak NGL will continue its role as the operator of Badak LNG plant.
The partnership will not affect share ownership in Badak NGL, 55 percent of which is owned by Pertamina.
The remaining shares are owned by Total E&P Indonesie (TEPI) (10 percent) Vico Indonesia (20 percent) and Japan-Indonesia LNG Company (Jilco) (15 percent).
Badak NGL president director Didik Sasongko Widi added that the decision aimed to restore the business structure to the right scheme.
“Right now we are working under a government to business scheme because LMAN, which is a state agency, directly appointed us as the operator of the Badak LNG plant. Under the partnership, it will become business to business,” he said.
The new scheme will officially start in January. (bbn)
