An FSRU moored in Benoa Harbour, Bali / Shutterstock
An FSRU moored in Benoa Harbour, Bali / Shutterstock

JERA signs LNG MOU with Persero subsidiary

JERA Co. has signed a Memorandum of Understanding (MOU) with Persero subsidiary PT PLN Energi Primer Indonesia (EPI) to explore developing the LNG value chain in Indonesia.

PLN EPI is a fuel procurement and transportation operator for PLN, Indonesia’s largest power company. The MOU provides for collaboration in LNG procurement, optimisation and the development and operation of LNG receiving terminals in anticipation of growing demand for LNG in Indonesia.

By using JERA’s LNG expertise, JERA and PLN EPI will establish an LNG value chain for the power segment and study the possibility of converting to a hydrogen and ammonia value chain.

JERA, targeting Net Zero by 2050, was created through the consolidation of the fuel and thermal power departments of the Tokyo Electric Power Company and the Chubu Electric Power Company.

Collaboration to establish a value chain for LNG is needed to establish a stable supply of electricity and contribute to the country’s target of Net Zero emissions by 2060. Indonesia is highly dependent on coal-fired power generation.

Indonesia aims to produce about 250 cargoes of LNG this year compared with 213 cargoes in 2023, on the back of additional production from the BP-led Tangguh Train 3 expansion, according to an S&P Global Commodity Insights report.

The Tangguh Train 3 project has an LNG production capacity of 3.8 million mt/year and it has raised the Tangguh LNG terminal’s total LNG production capacity to 11.4 million mt/year since it started operations in October 2023.

Pertamina New & Renewable Energy and PT Perkebunan Nusantara III (PTPN III) recently announced a strategic partnership in commercialising a carbon credits project.

The PLTBg generation process utilises Palm Oil Mill Effluent (POME) waste from PTPN III’s palm oil mill processed at the Waste Water Treatment Plant (IPAL).

The POME waste is stored in a covered lagoon to prevent emissions methane being released into the atmosphere.

Methane is processed to produce electrical energy with a capacity of 2.4MW. Initial estimated carbon credits generated from this project are 15,000-25,000 tonnes of CO2 per year.

Last week Indonesia signed a wide-ranging MOU with ENI to tackle its emissions, covering bio-feedstock, biofuels, carbon capture and storage (CCS) and energy efficiency (click here).

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