JakartaPost-Apr 4
State-owned electricity company PLN is looking to import its first-ever liquefied natural gas (LNG) shipments to make up for a potential gas supply shortfall in the country. PLN has not previously imported LNG despite being permitted to do so by the government since 2017, as domestic supply has been sufficient to meet PLN’s demand for electricity generation. In 2017 Indonesia imported US$8.1 million worth of LNG from Kuwait, according to Statistics Indonesia (BPS) data. Mamit Setiawan, spokesperson of PLN’s primary energy arm PLN Energi Primer Indonesia (PLN EPI) said the firm was engaged in an application process for an LNG import permit from the government to anticipate a possible shortage in the second half of this year. However, the company has also been developing long-term solutions such as the development of midstream LNG infrastructure. “The plan to increase the gas-based generator quota by 20 gigawatts [GW] by 2040 requires a significant gas supply, which must be secured from this point on,” he told The Jakarta Post on Wednesday. “Gas plants will be the backbone of PLN’s electricity generation to overcome the renewable energy plants’ intermittency challenge in Indonesia’s energy-transition efforts.” Govt to ban LNG exports to meet domestic needs Southeast Asia’s largest economy is projected to face a shortage of around 10 LNG cargoes in 2024 and it is expected to meet the gap with imports amid increased domestic demand, declining local gas supplies and existing export commitments, according to analysts and market sources, as reported by S&P Global Commodity Insights on Jan. 26. Read more at:
