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Global LNG Demand Increases, Indonesia has The Potential to Become a Major Player in Asia

by Redaksi Asiatoday
June 26, 2024
in Business
Reading Time: 3 mins read
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Global LNG Demand Increases, Indonesia has The Potential to Become a Major Player in Asia

PT Perta Arun Gas facilities. Doc

ASIATODAY.ID, BANDUNG – Global demand for liquefied natural gas (LNG) is expected to increase by more than 50% by 2040, as the industrial coal-to-gas shift accelerates in China and South and Southeast Asian countries use more LNG to support their economic growth. This opens up new business opportunities for LNG receiving terminal contractors in Indonesia, one of which is PT Perta Arun Gas.

PT Perta Arun Gas Ratio Business Development Manager Fitra Maliki said that LNG opportunities in Asia will grow by around 47% and around 69% of gas supply in Asia must be met by LNG. Especially with the discovery of natural gas resources in Andaman some time ago.

“This will be a game changer for the gas business in Indonesia when gas from Andaman with reserves of perhaps more than 6 BCF will enter the Aceh region, then the Semangke to Dumai pipeline will be realized and the pipe from Cirebon to Batang will also be realized, then Sumatra-Java will “This connection will be established,” he said at the Gas and Earth Forum in Bandung, Thursday, June 20 2024.

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Fitra explained that the challenge for LNG in Indonesia is that Indonesia is located on quite a number of islands, so the challenge means that facilities must be integrated. One of the solutions other than piped gas is the LNG transportation mode, either with a brake valve or via an isotank.

“This large gas discovery in both Andaman and Kalimantan could be one way to achieve the net zero target in 2060,” he said.

According to Fitra, experience in providing infrastructure and continuing to provide human resources plays a very important role in realizing the acceleration of energy infrastructure provision in Indonesia.

Fitra said that currently, Pertamina Arun Gas (PAG) is also collaborating with several companies, both domestically and abroad, to be able to use the Arun terminal to distribute LNG, either via standard cargo ships or brake pumps, or isotank.

“PAG has prepared itself to become a receiving terminal as it previously ran a liquefaction gas treating facility business which will channel gas into pipes or a liquefaction facility which will be used to send gas via modern LNG transportation, both abroad and within the country. This is an opportunity for “We all need to meet domestic gas needs,” he said.

Fitra emphasized that Pertamina Arun Gas has planned a future business master plan to help distribute gas in the form of piped gas or LNG. So we have made a master plan ready to receive gas from Hadaman and then treat it or liquidate it.

“We are ready to transfer gas to the Eastern Indonesia region via LNG mode or via a pipeline that will connect between Sumatra and Java,” he said.

Fajar continued, Perta Arun Gas is the first conversion terminal to convert terminal export carbon into terminal residues and is the only conversion terminal in the world. Perta Arun Gas converted the terminal into an export terminal and regasification terminal. Perta Arun Gas is the first and largest land base terminal in Indonesia to receive cargo for regasification from Tangguh and Bontang.

He explained that the main consumers of Perta Arun Gas are PLN and PT Pupuk Iskandar Muda, Pertagas Niaga. In 2019, Perta Arun gas ran an energy hub business which in 2022 became the busiest LNG export terminal in the world, beating Singapore, the Netherlands and others.

Currently, Perta Arun gas runs several main businesses, including LNG regasification, LNG Hub, LNG Gassing Up and Cooling Down (GUCD), LNG Isotank Filling Station, LNG & Fuel Oil Bunkering, Utilities Provider, Land Base Logistic, Cold Energy, and Plant Support Facilities.

“Currently from the LNG business, we receive LNG from all over the world,” said Fitra.

Fitra said that the LNG terminal owned by Perta Arun Gas exports LNG to Asia Pacific, especially in China. The Plan Availability Factor at the Perta Arun Gas terminal is quite high, making the terminal quite trusted by world players.

“We also maintain safety and reliability so that trust continues to grow,” he continued.

According to Fitra, Perta Arun Gas’s LNG is already fully occupied and used by tenants because the advantage of Perta Arun Gas’s LNG is that it is located in a special economic zone, where this area has many incentives from the government.

“One of them is a tax holiday, so investments there of more than IDR 100 billion will be given a tax holiday facility for up to 20 years,” he said. (AT Network)

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Tags: LNGPertaminaPT Perta Arun Gas
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