Indonesia has started to replace diesel with LNG in several of its power plants.
This move is set to boost natural gas demand for one of the world’s top LNG exporters.
Following a decade of delays, Indonesia has finally launched a $1.5 bill project to distribute LNG on a small scale to power dozens of plants that currently run on diesel, according to a Reuters report.
Fuel procurement and transportation operator, PLN EPI, for Indonesia’s largest power company, PLN, is leading the project.
Last year, Japan’s JERA signed a collaboration agreement with PLN EPI to co-operate with LNG procurement, optimisation, and the development and operation of LNG receiving terminals in anticipation of growing demand for LNG in the country.
By tapping into JERA’s LNG expertise, the Japanese energy buyer will establish an LNG value chain with PLN EPI for the Indonesian power segment, both companies said.
