The Indonesian gas transportation and distribution company PT Perusahaan Gas Negara (PGN), an affiliate of the national oil and gas corporation Pertamina, will invest US$2.5bn to build LNG import terminals and gas distribution infrastructures to support the gasification program of the state-owned power company PT PLN. PGN has developed a small-scale LNG terminal that can be used to supply gas to PLN's gas-fired power plants. A first phase will be implemented to meet the generated capacity of 588 MW in Krueng Raya, Nias, Tanjung Selor (East Kalimantan), Gilimanuk, Sorong and Jayapura in 2020. Following phases will focus on Nusa Tenggara, West Kalimantan, North Papua, Sulawesi and Maluku, and later on North Maluku and South Papua.
A government degree, enacted in January 2020, forces PLN to use LNG in its 52 diesel power plants that will be adapted to allow them to use gas. The objective is to reduce Indonesia’s diesel consumption by 40%.
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