Skip to main content

PGN will develop 3 domestic LNG hubs to gasify Indonesia

Indonesia's state-owned gas company PT Perusahaan Gas Negara (PGN) plans to invest US$2.5bn to use three Indonesian LNG terminals as regional gas distribution hubs. The company will use its LNG terminal in Arun (Aceh), where some liquefaction and export capacities were converted to import and regasification, and its floating storage regasification unit (FSRU) in Lampung (Sumatra) and will build a third gas terminal in Ambon (Maluku). PGN would also have to acquire gas pipelines and supporting facilities for this gasification project. The three gas hubs would supply gas to 52 CNG-fired power plants in western, central and eastern Indonesia, that currently run on diesel and could use more gas (reducing fuel imports and CO2 emissions). PGN and Indonesia's state-owned power utility PLN plan to gasify the first three power plants in 2020, namely those on Sorong (West Papua), Tanjung Selor (North Kalimantan) and Nias Island (North Sumatra). The remaining 49 power plants would be converted to gas by January 2022.