Indonesia Small Scale Ambitions Take Shape to Fire Power Plant

Indonesia has the potential and the ambition to become Asia’s most important small-scale LNG player. LNG particularly appeals to the archipelago because a number of stranded markets have no electricity, and it would be impractical and expensive to build pipelines from remote domestic gas fields to power plants serving such limited demand. State power company PT Perusahaan Listrik Negara (PLN) is planning dozens of facilities to provide gas and power to such stranded users (see LNGWM, Mar’15). Indonesia’s electrification ratio is now 84.4% and the government would like a larger percentage of the country to have access to power. Indonesia issued a request for proposal (RFP) in late October for LNG supply and distribution for its 1,611-MW Central Indonesia power distribution plan, and 11 companies or consortiums made the shortlist. The RFP wants proposals for a 10- year build-operate-transfer scheme at zero salvage value to PLN for 21 power plants without PLN making any initial investment, said sources actively involved in the bid process. Please fill out form below to view article.