Central PLN Prepares Sulawesi-Maluku Cluster Generation Gasification

Natural gas (intermediate illustration)

JAKARTA - PT PLN (Persero) through the subholding of PLN Energi Primary Indonesia (EPI) has prepared a generating gasification program. This time, cooperation was carried out in the development of the Liquefied Natural Gas (LNG) midstream infrastructure in the Sulawesi-Maluku region.

This synergy was realized in the signing of the Joint Development Agreement (JDA) between PLN EPI and the PT AGP Indonesia Utama (AGPIU) Consortium, PT Suasa Benua Sukses (SBS) and PT KPM Oil & Gas (KPMOG) at the PLN Headquarters, Jakarta on Tuesday 26 March.

PLN President Director Darmawan Prasodjo explained that the generating gasification program is a strategic step that also reduces fuel costs and dependence on imports of crude oil or diesel.

PLN already has an Accelerated Renewable Energy Development (ARED) strategy. In this energy transition scheme, PLN's electricity source will be sourced from 75 percent of power plants sourced from renewable energy and 25 percent sourced from gas plants. For this reason, the role of gas is considered crucial in the energy transition era," Darmawan explained, quoted on Monday, April 1.

Darmawan added, with this collaboration, PLN strengthens strategic collaboration with gas infrastructure providers to ensure gas supply for power plants. Because with a strong primary energy supply, it is able to ensure reliable electricity supply.

PLN Legal & Human Capital Director Yusuf Didi Setiarto said the signing of the cooperation between PLN EPI and consortium partners was an important stage in the development of primary energy in Indonesia.

"We should be happy because we gradually find solutions to the development of the LNG supply chain through the signing of this cooperation. All parties must consolidate to map out the next stage so that this program can be carried out properly," said Yusuf.

PLN EPI President Director Iwan Agung Firstantara revealed that PLN EPI was formed to ensure the availability of primary energy supply by simplifying the procurement and logistics process, providing primary energy supply, and building a strong supply chain. This includes offering environmentally friendly primary energy to support NZE and ARED strategies that have been launched by the PLN group.

"With PLN's commitment to power plants sourced from gas, PLN EPI needs to accelerate the development of LNG midstream infrastructure for generating gasification, including in the Sulawesi-Maluku region," said Iwan.

Iwan explained that the existence of pipeline gas networks and LNG terminals is currently almost entirely in the western part of Indonesia. To support the gas supply chain, PLN EPI and selected partners will develop LNG midstream infrastructure in Indonesia, including in Sulawesi and Maluku.

Iwan explained that the AGP-SBS-KPMOG consortium has been designated as a partner for the development of regasification in 7 locations in the Sulawesi and Maluku regions with a total capacity of 1,510 megawatts (MW).

CEO of AG&P LNG and Commissioner AGPIU, Karthik Sathyatasthy appreciates the collaboration established with PLN EPI. Karthik emphasized that his party is strongly committed to supporting efforts to develop infrastructure _midstream_LNG in Indonesia through long-term cooperation with PLN EPI.

"We will work hard to jointly carry out the project according to the set deadline. This is the initial stage of long-term cooperation for the next 20 years," said Karthik.

Karthik added that the LNG midstream infrastructure development project with this cluster scheme attracted the attention of world LNG industry players because the level of project complexity, especially in terms of location and supply chain, was one of the units that made LNG's first cluster model development projects in the world.

However, this challenge will be one of the encouragements for the consortium to focus on working on projects while supporting PLN Group's decarbonization efforts.

"We are confident that our solution will open up other potentials in the development of the Sulawesi-Maluku cluster. At the same time, helping PLN in achieving the important stages of decarbonization in the power generation sector. We are grateful for the opportunity given," concluded Karthik.