PLN partners with three firms to develop LNG infrastructure

PT PLN Energi Primer Indonesia (PLN EPI), the fuel trading arm of state-owned electricity company PT PLN, has partnered with three strategic companies to develop LNG infrastructure in support of Indonesia’s energy transition.

The partnership was formalized with the signing of a Shareholders’ Agreement (SHA) on December 31, 2024, in Jakarta. The agreement forms a Special Purpose Company (SPC) aimed at gasifying PLN’s power plants in the Sulawesi-Maluku region. Partners in the consortium include PT AGP Indonesia Utama, PT Suasa Benua Sukses, and PT KPM Oil & Gas.

Iwan Agung Firstantara, President Director of PLN EPI, explained that the project aims to replace diesel fuel (BBM) with LNG to power plants in Sulawesi and Maluku, where reliance on diesel has been high.

“This project is a strategic step to strengthen gas as a reliable, sustainable, and domestically sourced energy option. Through our collaboration, we are confident that this initiative will accelerate Indonesia’s energy transition and enhance energy security, particularly in Sulawesi and Maluku,” said Iwan, as reported by Ruangenergi.com on Tuesday.

Iwan added that LNG plays a critical role not only in reducing emissions but also in supporting renewable energy. “This project will improve energy system reliability and contribute to achieving Indonesia’s Net Zero Emissions (NZE) goal by 2060,” he said.

The first phase of the LNG development will involve 10 gas and diesel power plants (PLTG/PLTMG) in six locations: Pomala, Bau Bau, Kendari, Gorontalo, Ternate, and Ambon, with a combined capacity of 660 MW.

“This is an extraordinary project that promotes energy transformation in Indonesia, an archipelagic nation. We, as the consortium, are proud to be PLN EPI’s chosen partners. The signing of the Shareholders’ Agreement and the establishment of the Special Purpose Company (SPC) demonstrate strong commitment to realizing the LNG gasification project for the Sulawesi-Maluku cluster. This initiative aims to provide clean energy for PLN’s power plants,” stated Karthik Sathyamoorthy, President Commissioner of PT AGP Indonesia Utama.

Editing by Reiner Simanjuntak