State electricity firm PT PLN (Persero) and Japan’s JERA Co. Inc. have recently signed a memorandum of understanding to collaborate on liquefied natural gas (LNG) supply, midstream infrastructure, and green hydrogen development.
The agreement, signed by PLN Energi Primer Indonesia (PLN EPI) Director Rakhmad Dewanto and JERA Executive Officer Shinsuke Nakayama in early February, aims to strengthen PLN’s primary energy management and optimize fuel supply chains as the company transitions to cleaner energy sources.
"This marks the beginning of PLN EPI’s transformation into a world-class primary energy company," said PLN CEO Darmawan Prasodjo. "Beyond LNG, we are looking at alternative green energy solutions, including hydrogen, which we recognize as the fuel of the future."
The collaboration will focus on LNG procurement, supply chain optimization, midstream infrastructure development, and workforce training in the LNG and green energy sectors. It also includes exploring green and blue hydrogen, as well as ammonia, as alternative fuels for power generation.
Read also: JERA and PLN EPI partner for LNG value chain development
PLN EPI President Director Iwan Agung Firstantara highlighted the role of gas as a transition fuel, replacing diesel and coal in the short to medium term while supporting renewable energy integration in the long term. "PLN EPI is expanding its LNG contract portfolio and midstream infrastructure to reduce fuel oil consumption in PLN Group’s power plants," he said.
Nakayama noted that JERA and PLN EPI share similarities as primary energy suppliers for the largest utilities in their respective countries. He emphasized JERA’s commitment to supporting PLN’s energy security and decarbonization strategy.
"We know PLN is expanding its business and reinforcing its energy supply chain, and we are pleased to be part of this journey," Nakayama said. "LNG and green energy development will play a critical role in PLN’s decarbonization roadmap."
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Editing by Alexander Ginting
