PLN, Dewata Energy Sign MoU on LNG Terminal

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 071.Pers/04/SJI/2021

Date: 25 February 2021

PLN, Dewata Energy Sign MoU on LNG Terminal

The Indonesian government accelerates the use of clean energy such as natural gas, for example through the development of Liquefied Natural Gas (LNG) terminal infrastructure. "The portion of natural gas use in 2020 was recorded at about 19.5%, while the target for 2025 is set at 22%", said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources, Agung Pribadi, in Jakarta on Thursday (25/2).

To meet the target, State Electricity Company PT PLN (Persero) through its subsidiary PT PLN Gas & Geothermal (PLNGG) and Bali provincial government-owned enterprise PT Dewata Energy Bersih (DEB) signed a Memorandum of Understanding (MoU) on the feasibility study of Bali LNG Terminal development. The MoU is part of PLN transformation, and in line with the energy and electricity policy of Bali Provincial Government to promote the use of clean and environmentally friendly energy.

The signing ceremony was held virtually on Tuesday (23/2), attended by President Director of PT PLNGG, Moh Riza Affiandi, and Director of PT DEB, Cokorda Alit Indra Wardhana. President Director of PT PLN (Persero), Zulkifli Zaini, said the cooperation is part of his company's commitment to an increased use of clean and environmentally friendly energy.

"The MoU refers to the vision Nangun Sat Kerthi Loka Bali, which means maintaining sanctity and harmony of Bali's nature to create a prosperous Bali. Thus, development of energy infrastructure must be environmentally friendly and uphold the values of local wisdom. At the same time, PLN is committed to an increased use of clean energy," said Zulkifli.

In a separate location, Bali Governor, I Wayan Koster, explained the energy and electricity policy of Bali Provincial Government. Koster said that Bali government would continue to promote environmentally friendly energy.

"Although Bali does not have any natural and mineral resources for electricity generation, but Bali's desire is in line with the national regulations on energy and electricity, that is, we want to keep Bali's nature clean, both upstream and downstream," said Koster.

The feasibility study is expected to become a foundation for further cooperation to develop LNG receiving and regasification terminal infrastructure in Bali between PT PLNGG and PT DEB.

Bali LNG Terminal is targeted to become operational by early 2023, when it starts to supply natural gas to Pesanggaran Diesel and Gas Power Plant.

The LNG to be used by Pesanggaran Power Plant will be supplied by PLN, who has a long-term contract with the LNG producer, BP Tangguh. The main challenge in providing LNG supply is limited infrastructure, such as LNG terminal, LNG transportation, and other supporting facilities.

In providing electricity service in Bali, PLN will prioritize the use of clean energy, for example through gas power plant. Besides optimizing Pesanggaran Diesel and Gas Power Plant with a capacity of 200 megawatt (MW), PLN will relocate Gas and Steam Power Plant to Pesanggaran with a capacity of 300 MW. The efforts have been taken to meet the electricity demand and strengthen the electricity system of Bali to realize the vision of Independent Bali with Clean Energy.

To maintain the reliability of Bali electricity system, PLN will also integrate the Java-Bali electricity system through a transmission network dubbed the largest interconnection system in Indonesia. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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