Monday, December 23, 2024

AG&P inks 20-year deal to operate Indonesian LNG import infrastructure

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A consortium comprising three Indonesia-based companies has secured a large-scale 20-year contract for LNG infrastructure with PLN Energi Primer (PLN EPI) in Indonesia that will serve seven power plants of a total of 1,510 MW capacity.

LNG terminals and downstream infrastructure company AG&P LNG, majority-owned by Nebula Energy, announced that its subsidiary PT AGP Indonesia Utama (AG&P Indonesia), along with consortium members Suasa Benua Sukses (SBS) and KPMOG, had won a 20-year contract for LNG infrastructure from PLN EPI in Indonesia.

Source: AG&P LNG

The tender was awarded to AG&P LNG for the co-development, ownership and operations of LNG import terminal infrastructure and downstream logistics in seven locations within the Sulawesi-Maluku cluster in Indonesia.

PLN EPI, a wholly-owned subsidiary of PT PLN (Persero) Indonesia, will be the customer and co-shareholder in this facility.

AG&P Indonesia, along with the consortium members, will establish a joint venture (JV) with PLN EPI to collaborate on the design, financing, construction, ownership, and operations of all offshore and onshore infrastructure within the Sulawesi-Maluku cluster LNG terminals.

This includes the LNG carrier, floating storage and regasification unit (FSRU), and multiple onshore regasification sites. The aim is to supply LNG and natural gas to seven power plants with a cumulative capacity of 1,510 MW.

According to the company, the Sulawesi-Maluku, the largest power cluster in Indonesia, will have LNG import terminals of a total regasification capacity of 2.3 million metric tonnes per annum (MMTPA) with multiple regasification sites across its seven locations. The expected commissioning of the LNG Cluster is in the first half of 2026.

“We are excited about our joint venture with AG&P LNG and its Consortium members. This partnership will be pivotal to the development of LNG midstream infrastructures to Power cluster project in Indonesia, where Sulawesi-Maluku cluster is the largest,” said Rakhmad Dewanto, Director of Gas and Fuel PLN EPI.

“PLN EPI will be responsible to supply the LNG from its portfolio and trust that the Consortium members will deliver the project timely in the first half of 2026. This will be a milestone in our country’s continued transition towards more reliable and cleaner energy.”

AG&P LNG currently has a pipeline with a total of six LNG terminals in development with a proposed capacity of 25 MTPA across several international growth projects. Among its LNG terminal project portfolio, AG&P LNG is the operator of the first LNG import and regasification terminal in the Philippines, the Philippines LNG (PHLNG) Import Terminal located in Batangas Bay.

Earlier this month, the company announced the acquisition of a 49% stake in Cai Mep, a $500 million fully constructed LNG Import Terminal, with a capacity of 3 MTPA, expandable to 6 MTPA, and one of the only two existing LNG terminals in Vietnam.

“We are thrilled to collaborate with PLN EPI and embark on the development of this large-scale infrastructure investment in Indonesia. Nebula Energy recently signed on to membership in Indonesia’s Carbon Capture and Storage Center (ICCSC) as a technology provider,” said Sam Abdalla, CEO of Nebula Energy and Vice Chairman of AG&P LNG.

“These partnerships with ICCSC and PLN EPI align with our company’s vision of promoting sustainable energy development through global clean energy infrastructure investments.”

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