22 March 2024 – A Consortium, consisting of Korean and Indonesian companies, has formalized a collaboration with PLN Energi Primer Indonesia (PLN EPI) to jointly develop LNG Infrastructure Facilities in the Nusa Tenggara region. Through the development and signing of a Joint Development Agreement (JDA) between the consortium and PLN EPI in Jakarta, the partnership can now officially start.

The consortium, though led by Indonesia, includes several Korean companies specializing in the LNG industry, ranging from EPC, O&M, and Technology-related expertise.

A Letter of Intent (LoI) was initially awarded to the consortium as the first-ranked bidder which highlighted the excellent technical and commercial proposals delivered by the consortium. The JDA further made way for other steps of initiation for the project, including establishing the Project Company and pursuing Financial Closure through a Debt Financing Arrangement.

In developing LNG facilities in Indonesia, PLN aims to convert 20 diesel-fired power plants into gas power plants with a combined capacity of 2,278 MW, requiring a gas supply of 151 BBTUD, equivalent to 18 LNG cargoes per year.

This conversion program will be implemented in various areas in the eastern and central regions of the country, divided into six clusters: Sulawesi-Maluku Cluster (6 power plants), Nusa Tenggara (6 plants), Kalimantan (1 plant), North Papua (4 plants), South Papua (2 plants), and Nias (1 plant).

KIORCC has been an integral part of the success of this project so far, offering its support to network with Korean companies, as well as facilitate discussion within the consortium, and/or with the project owner. KIORCC remains optimistic about similar collaborations between Indonesian and Korean businesses and governments in the LNG sector to come to fruition in the future.