Jakarta – A decline in gas pipeline supplies to several electricity systems has prompted PLN Energi Primer Indonesia (PLN EPI) to accelerate the development of midstream LNG infrastructure. This step is considered crucial to maintaining the reliability of primary energy supplies and controlling increases in the Basic Cost of Electricity Supply (BPP) amid rising fuel consumption by power plants.
The increase in electricity demand stated in the RUPTL has prompted PLN EPI to adopt an aggressive strategy to ensure the availability of feedstock for PLN power plants. On Wednesday, 26 November, Agus Purnomo, General Manager of the GBM PLN EPI Project Unit (UP), explained that PLN EPI now plays a central role in procuring primary energy, including gas and LNG, fuel oil, coal, and bioenergy.
“National electricity demand is estimated to reach 511 TWh by 2034, with Java remaining the centre of demand, although consumption growth is increasingly evident in Kalimantan and Sulawesi,” he said.
However, the decline in pipeline gas supply and the 10–15 per cent increase in fuel consumption since 2023 have put pressure on system efficiency. Agus believes that this situation no longer allows further delays to the fuel-to-gas conversion programme. He said that this year’s LNG demand is estimated at around 90 cargoes and is projected to increase to 104 cargoes next year, as coal-fired power plant capacity cannot be continuously expanded.
“Converting from fuel to gas is no longer an option, but a necessity,” he said.
To that end, PLN EPI is accelerating the development of a more flexible midstream LNG network, including through a multi-destination scheme, so that supply can be quickly diverted in the event of disruptions at certain power plants. This midstream project is being implemented in two phases. In the first phase, several supply facilities are being built in Nias, Sulawesi–Maluku, Nusa Tenggara, and North Papua.
The project in Nias is now in the final stages of construction and is scheduled to undergo trials in late November or early December, before becoming fully operational in January 2026. According to Agus, once this initial cluster is operational, fuel consumption for logistics needs could be reduced by up to 2.3 million kilometres per year.
Following the completion of the first phase, LNG infrastructure development will be expanded to other regions that still rely on fuel oil, such as East Halmahera, Sanana, Sofifi, Morotai, Bangka Belitung, and several locations in Kalimantan. At the same time, PLN EPI is accelerating efforts to strengthen gas supply in the Java–Madura–Bali region in anticipation of increasingly tight pipeline gas supplies from Sumatra and East Java.
A number of new FSRUs have been prepared to support this supply reinforcement, including the West Java 2 FSRU in Muara Tawar and FSRUs in Bali, Cilegon, West Kalimantan, South-Central Kalimantan, Pomala, and Stargate. Agus added that the East Java FSRU will play a strategic role as additional support for the gas transmission network, especially for the Java-Bali 3 CCCT power plant.
He emphasised that accelerating these projects requires the full support of all partners and stakeholders. According to him, the successful conversion from fuel oil to gas will not only reduce the BPP and improve generation efficiency, but also accelerate the transition to cleaner energy.
“We cannot walk alone. PLN EPI invites all partners to collaborate to ensure that the primary energy supply remains reliable in Java, Bali, and outside Java. Together, we will realise efficient, clean, and reliable energy security,” he concluded. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
