I wonder where EWC sit with this tender arrangement? PLN seeks...

I wonder where EWC sit with this tender arrangement?

PLN seeks LNG, processing
packages from suppliers

Raras Cahyafitri, The Jakarta Post, Jakarta | Business | Thu, April 02 2015, 8:45 AM

State-owned electricity company PLN is looking for suppliers that can provide gas and processing facilities to ensure the gas supply for numerous power plants in the future.

The new strategy aims to speed up the company’s plan to develop numerous gas-fired power plants, which is part of the government’s program to develop 35,000 megawatt (MW) power plants, according to PLN director for strategic procurement and primary energy Amin Subekti.

“The purpose of the tender is to combine LNG [liquefied natural gas] supply, transportation and infrastructure. Thus, interested parties can set up a consortium so they can offer us the complete package,” Amin said.

PLN has been using LNG to fuel its gas-fired power plants from several years as the company struggles to reduce the use of expensive oil fuel for power plants. To secure the gas supply, so far PLN has either established its own procurement contract with gas producers or purchased from traders.

For example, PLN has a gas-selling agreement with BP Indonesia for the delivery of LNG cargo from the Tangguh plant in Papua to a re-gasification facility in Arun, Aceh.

PLN also has an agreement with Pertamina Gas (Pertagas) for the processing of Tangguh LNG at Pertagas’ re-gasification facility in Arun and for distributing the gas through Pertagas’ pipeline to PLN’s power plant in Belawan, Medan, North Sumatra.

In another agreement, PLN produced a contract with traders for a gas supply. PLN has an agreement with PT Nusantara Regas, which is operating a floating storage and re-gasification unit (FSRU) in West Java. Through the West Java FSRU, Nusantara Regas processes the LNG it purchases and delivers the gas to buyers, including PLN and other industries.

The two plans often meet problems, particularly when the gas fields are ready to supply but gas cannot be delivered because of the development of a pipeline or if re-gasification units have not been completed.

There are also cases where pipeline and re-gasification units are ready but gas fields have yet to produce.

Thus, by looking for suppliers that can provide LNG supply and transportation in one package, PLN could more easily ensure all of its power plants are operating on schedule.

Of the government’s 35,000 MW electricity development program within the next five years, 13,000 MW will be gas-fired power plants developed by PLN and independent power producers.

The firm estimates it will need an additional 1,100 billion British thermal units per day (bbtud) of gas when its new gas-fired power plants are completed in 2019. It currently requires 1,100 bbtud for its existing gas-fired power plants.

“The additional 1,100 bbtud is expected both from LNG and pipe gas. For LNG, PLN doesn’t limit the source of LNG and the supply can be from domestic or imported sources as long as it’s efficient and is offered at a good price,” Amin said.

PLN recently began the tender for the procurement of gas supplies for 32 new distributed gas power plants with a combined capacity of 2,531 MW located in the central part of the country. As many as 10 power plants with a combined capacity of 450 MW are located in Nusa Tenggara, 14 plants with a total of 1,520 MW in Sulawesi, and eight plants with 561 MW in Kalimantan.
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PLN estimates it will need an additional 1,100 billion British thermal units per day (bbtud) of gas when its new gas-fired power plants are completed in 2019.​

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