LNG

Eni has secured about 2 million tonnes per annum (mtpa) of LNG from its South Hub and North Hub projects in Indonesia, supplied via the Bontang terminal in East Kalimantan. The additional supply will help Eni reach its target of more than 20 mtpa of contracted LNG supply by 2030.

Japanese utility Inpex has signed preliminary deals with BP and Shell Eastern Trading, as well as the Indonesian companies PLN Energi and Perusahaan Gas Negara, to offtake LNG from the 9.5 mtpa Abadi liquefaction project. The accords take the project closer to a final investment decision (FID) in 2027.

The Philippine government is regulating electricity rates to counter the risk of LNG-linked price inflation of up to 16 percent, amid Middle East shipping disruptions. Energy Secretary Sharon Garin is negotiating stable coal supplies from Indonesia to facilitate fuel switching and wants to temporarily cap spot power prices.

Indonesia is turning to LNG-fuelled power generation to ease its stalled coal exit, as international coal retirement efforts struggle. Tenders for small-scale LNG distribution are targeting 41 power plants with 2,148 MW capacity combined in remote regions, with operations expected from late 2026 to 2027.

PT PLN Energi Primer Indonesia, a subsidiary of state-owned Persero, has found a growing need for LNG imports to balance a near-term shortfall in domestic gas production. Together with JERA, PLN EPI aims to develop an adaptable LNG import model, capable to respond to market fluctuations and ensure Indonesia long-term supply reliability.

Eni seeks to launch its gas joint venture with Petronas in 2026 to develop gas fields in Malaysia and Indonesia with a view to becoming a regional LNG player. Petronas brings the Bintulu LNG complex and FLNG assets in Malaysia, while Eni seeks to channel upstream gas production into its JV partner’s expanding LNG supply chains.

French energy major TotalEnergies has acquired stakes in multiple blocks offshore Malaysia and Indonesia from Petronas, targeting oil prospects with a view to export LNG from Malaysia from 2030.

Singapore is at the heart of an evolving regional power grid which is poised to lower the share of LNG-fuelled power generation. If all proposed interconnections get built, they could unlock up to 25 GW of renewable and energy storage capacity worth over $40 billion, Rystad Energy reckons.

Today, over 96% of Singapore’s electricity is generated by burning natural gas which needs to be imported as LNG. Yet, Rystad analysis finds that importing electricity through the regional grid is cost-effective for the city state and could help reduce CO2 emissions by 13 million tons per year.

Higher load factor helps reduce electricity cost

Though CCGT are flexible and reliable in terms of operation, comparing the levelized cost of electricity (LCOE) reveals that electricity imports via ASEAN interconnectors may offer a more cost-effective alternative to building new domestic CCGT capacity. Singapore’s Electricity Market Authority (EMA) current regulatory framework require projects to reach an annual load factor of at least 60% within five years of commercial operation. For project developers there is a strong economic incentive to exceed this target.

Raising the load factor target from 60% to 100% could lower the overall LCOE, as this helps spread transmission costs more equally. This impact is particularly significant in countries such as Malaysia (Sarawak), Cambodia and Vietnam, where long transmission distances amplify cost optimization benefits particularly for hydropower projects

Solar-plus-storage hybrid systems, with optimized direct current/alternating current (DC/AC) configurations and appropriately sized battery energy storage systems (BESS), can already achieve load factors above 90%. By integrating solar and BESS technologies with the necessary backups, these systems can reach the level of reliability required by Singapore’s EMA and could be comparable to other dispatchable energy sources.

“Hybrid systems could deliver lower LCOEs than many in the industry currently anticipate. Singapore, strategically positioned at the heart of this evolving energy system, stands to gain significantly,” said Rystad’s renewables analysts Nevi Cahya Winofa.

Privately-held Bosowa Energy Group, an East Indonesian conglomerate, has teamed up with BK LNG Solutions to accelerate Indonesia’s clean energy transition. The two partners agreed to develop floating storage units (FSRUs) for importing LNG to fuel gas-fired power plants and distribute small-scale LNG via ISO tanks to remote and underserved regions.

The cooperation allows Bosowa Energy to combine its domestic operational capabilities with BK LNG’s international LNG expertise. A key element of the partnership will be the re-powering of diesel-fuelled plants on remote island to run on natural gas. The initiative will not only help cut emissions but also improve electricity access and grid stability in remote and often underserved regions.

Pilot projects underway in East Indonesia

To that end, Bosowa and BK LNG want to deploy modular LNG regas units and develop a localized system of micro grids. Pilot projects are scheduled to launch in Eastern Indonesia towards the end of 2025, with plans to expand operations nationwide in the coming years.

By joining forces, Bosowa and BKLS aim to accelerate project execution. Muhammad Akram, Chief Operating Officer (COO) of Bosowa Energy Group said the partnership “not only enables us to diversify our energy portfolio with scalable LNG solutions, but also directly supports our mission to reduce emission to enhance energy reliability in underserved regions.”

Henry Kim, President of Singapore-based BK LNG Solutions, highlighted the company’s commitment to support Indonesia’s clean energy transition: "As a specialist in flexible LNG solutions (…) we are confident in our ability to deliver reliable and efficient natural gas solutions tailored to Indonesia's unique needs, which we believe are essential for a resilient energy transition,” he said.

Rival FSRU onstream in West Java

The Japanese shipping major Mitsui O.S.K Lines (MOL) has already put an FSRU into commercial operation in early April. The floating LNG import units helps provide fuel to a power plant in West Java. The project is one of Asia’s first integrated gas-to-power project that involves an FSRU.

Development of the Jawa 1 gas-fired plant and project development was handled by PT Jawa Satu Regas (JSR), a jointly established company with PT Pertamina, Marubeni, and Sojitz Corp. Debt financing was arranged via the Japan Bank for International Cooperation, Asia Development Bank (ADB), Mizuho Bank, MUFG Bank, Oversea Chinese Banking Corpn, Crédit Agricole and Investment Bank, and Société Générale Bank & Trust.

Plans to realise an onsite LNG regas terminal adjacent to an oil refinery on Java island are being reconsidered. Called Central Java Mini LNG terminal, the 0.84 mtpa regas project comes at an estimated cost of $152 million and would supply gas to a local refinery as well as to electric utilities in southern central Java.