Kayan LNG to supply PLN Tarakan with LNG, documents reveal

By Bernard Loebs

Mini-LNG producer PT Kayan LNG Nusantara (KLN) is set to supply liquefied natural gas (LNG) to PLN Tarakan’s power plant in Gunung Belah, North Kalimantan, according to environmental documents submitted to Indonesia’s Ministry of Environment and Forestry. The plan involves LNG sourced from Kayan LNG’s mini terminal in Simenggaris, transported via ISO tanks.

The facility, managed by PT PLN Energi Gas (PLN EG), will have a planned installed capacity of 11.46 million standard cubic feet per day (MMSCFD). The project includes building storage, transportation, and regasification facilities to support the gasification of the Tarakan power plant.

The first shipment will comprise 24 ISO tanks, each 40 feet in length, transported on a 1,200 deadweight tonnage (DWT) landing craft tank. Subsequent shipments will involve 21 ISO tanks. Tarakan's Pelindo Port will serve as the hub for LNG deliveries, which will then be transported by trucks to the regasification facilities in Gunung Belah.

When contacted by Petromindo, PLN EG Corporate Secretary Evi Purnama Sari did not respond to requests for comment. Similarly, Vernon Sapalatua Tampubolon, Business Director II of PT PLN Nusantara Power Construction, declined to provide details, citing confidentiality.

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“We cannot share information on this matter,” Tampubolon told Petromindo on Monday.

Documents also indicate that PLN EG has tasked PT PLN Nusantara Power Construction with building the LNG regasification and storage facilities. However, speculation about whether the LNG supply might involve PGN Group was addressed by Ratih Esti Prihatini, PGN’s Commercial Director. She confirmed that the LNG destined for PLN Tarakan is not part of PGN Group’s supply.

“PGN Group has an agreement with Kayan LNG Nusantara (KLN), but PLN has its own supply agreements,” Ratih clarified to Petromindo on Monday.

The project marks a significant step in diversifying PLN Tarakan's energy sources, leveraging LNG to enhance the reliability of power generation in the region. Further developments are anticipated as construction progresses.

Editing by Alexander Ginting