Singapore firms, PLN to provide LNG for remote west Indonesia
SINGAPORE (Reuters) — Pavilion Energy and Keppel Corp have signed a heads of agreement with Indonesian state electricity utility PT Perusahaan Listrik Negara (PLN) for small-scale LNG distribution to western Indonesia, the two Singapore companies said on Thursday.
Pavilion Gas and Keppel Offshore & Marine Ltd will work with PLN to distribute LNG to remote parts of west Indonesia, as well as generate electricity at PLN's power plants, the companies said.
"Small-scale LNG enhances Singapore's role as a regional hub for LNG storage and reload, breakbulk and distribution," Seah Moon Ming, chief executive officer of Pavilion Energy and Pavilion Gas, said in a statement.
The agreement follows government discussions on energy cooperation last year and a subsequent feasibility study that demonstrated cost savings and mutual benefits from collaborating in small-scale LNG, Keppel said in a separate statement.
Reporting by Florence Tan; Editing by Richard Pullin
Indonesia, home to 260 MM people on 14,000 islands across a vast archipelago, is estimated to become the seventh-largest economy in the world by 2030, with such growth expected to boost the nation’s energy consumption by 80% from present levels.<sup>1</sup>
At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
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The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
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