The government has ordered state-owned electricity company PLN to use natural gas in some of its power plants in order to reduce Indonesia’s oil imports and to increase usage of cleaner fuel sources.
The Energy and Mineral Resources Ministry issued a decree dated Jan. 10 ordering PLN to use liquefied natural gas (LNG) in 52 diesel power plants that will be later modified to enable them to use gas.
The ministry had also assigned state-owned oil company Pertamina to supply the gas. The program’s purpose, as noted in the decree, is to reduce the trade deficit and to support the energy diversification program.
PLN president director Zulkifli Zaini said on Jan. 28 that the program would reduce the company’s diesel consumption from 2.6 million kiloliters (kL) last year to 1.6 million kL “with estimated operational cost savings at Rp...
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