LNG World Shipping: Indonesia; Big Plans for Small -Scale LNG

29 April 2016:”…The scale of Indonesia’s power-generation plans is positioning the country to become one of the fastest-growing markets for LNG and a regional first-mover in small-scale LNG in Asia. ‘Indonesia has the potential and the ambition to become Asia’s most important small-scale LNG player,’ says brokerage adviser Poten & Partners. “’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 gas fields to power plants serving such limited demand.’ “…Poten notes that PLN will not provide the winning bidders with a guarantee to cover regasification and shipping. It says: ‘A ballpark estimate for regasification is US$1-2/mBtu and US$3/mBtu for shipping, because of ship-to-ship transfers and the use of 5,000mᶾ-6,000mᶾ LNG carriers for distribution…’PLN will reserve the right to terminate the agreements early, without a minimum operating period, and the RFP does not provide any details on the type of financial penalties. Some bidders… are seeking clarification for this clause.'”