Jakarta, ONENEWS.MY.ID – The government, in this case the President of the Republic of Indonesia, Joko Widodo (Jokowi) stated that not only the shortage of coal supply, the power plant owned by PT PLN (Persero) also needed absorption. Liquified Natural Gas (LNG) to power its own power plant.
In response, the upstream oil and gas industry through the Special Task Force for Oil and Gas Activities (SKK Migas) is committed to meeting LNG needs for PLN’s power plants.
Deputy for Finance and Monetization of SKK Migas, Arief Setiawan Handoko said that in 2022, the upstream oil and gas sector is still committed to meeting LNG needs from PLN power plants. Upstream Oil and Gas has prepared 58 cargoes from the Bontang and Tangguh LNG refineries.
“Currently all related parties are ensuring the availability of energy for electricity, especially in the first quarter of 2022,” he said to ONENEWS.MY.ID, Wednesday (5/1/2022).
What is clear, said Arief, is that as a commodity, it takes time to prepare LNG. SKK Migas hopes that all cargo prepared for PLN can be absorbed. “The plan to use LNG fuel for the electricity sector is expected to be addressed in the future to ensure a safe supply for buyers and sustainable production for sellers,” said Arief.
Arief said that in the last three years, the upstream oil and gas sector has always succeeded in fulfilling the commitment to the number of LNG cargoes for the domestic electricity sector.
“We all know that in the future the role of natural gas, including LNG, will be more strategic as a transitional energy towards net zero emissions. In the process, SKK Migas ensures that the upstream oil and gas sector has and will continue to be committed to supplying LNG for power plants,” said Arief .
Currently, LNG supply for electricity comes from the Bontang and Tangguh LNG refineries. The realization of LNG supply for PT PLN (Persero) from the two refineries is 58 cargoes in 2019, 40 cargoes in 2020, and 54 cargoes in 2021.
“All needs can be met, including some requests that are periodically changed from the original schedule,” said Arief.
Even according to SKK Migas records, there are cargoes that have been contractually prepared, but not absorbed by PLN, namely 13 cargoes in 2020 and 11 cargoes in 2021.