PLN EPI Inaugurates LNG Storage And Regasification Facilities In Tarakan

President Director of PLN Energi Primary Indonesia Rakhmad Dewanto. (Photo: ANTARA)

JAKARTA - A subsidiary of PLN Energi Primary Indonesia (PLN EPI), namely PLN Energi Gas, inaugurated a liquid natural gas storage and regasification facility or Liquefied Natural Gas (LNG) in Tarakan, North Kalimantan.

President Director of PLN Energi Primary Indonesia, Rakhmad Dewanto, said that this project is part of the Gasification program to reduce the Basic Cost of providing electricity (BPP).

Not only that, this program also increases energy security considering that fuel is partly sourced from imports while gas is available domestically.

"In addition, the use of LNG or gas will also reduce one-third of carbon emissions compared to fuel in supporting Net Zero Emission," he said, Thursday, October 30.

According to Rakhmad, the success of the Tarakan project cannot be separated from the support of LNG producer Kayan LNG Nusantara, provincial and city governments and synergies between agencies.

Coordination between PLN Energi Primary Indonesia, PLN Energi Gas, Kayan LNG Nusantara and the Regional Government is running intensively. This project can be completed within 12 months. Currently, the Tarakan Mini Regas is a pioneer in converting fuel to gas that will be developed in other regions," he added.

Meanwhile, the Director of Generation Management of PT PLN (Persero), Rizal Calvary Marimbo said, this facility was built as a solution to the problem of gas supply which is often unstable.

According to him, the presence of LNG regasification will increase the reliability of the Tarakan electricity system while reducing the use of high-cost fuel oil (BBM).

So far, Tarakan is very dependent on the supply of piped gas which is associated from oil production so that it often fluctuates. With this regasification, we want to ensure more stable electricity reliability," said Rizal.

Dia menambahkan, penggunaan LNG sebagai sumber energi transisi juga sejalan dengan kebijakan nasional untuk menekan emisi karbon dan memperluas bauran energi bersih.

He added that the use of LNG as a source of transitional energy is also in line with national policies to reduce carbon emissions and expand the net energy mix.