Reviving an Idle Terminal

Negotiations between Perusahaan Gas Negara (PGN) and the State-Owned Electricity Company (PLN) on a new contract for the delivery of liquefied natural gas (LNG) from the floating storage and re-gasification unit (FSRU) in Lampung to the Muara Tawar plant in Bekasi, West Java, have reached an impasse.

"We have yet to reach an agreement," said PLN's Director for Commercial, Risk Management, and Compliance, Nicke Widyawati, in Jakarta. PLN seems to be in no hurry to finalize the agreement. According to Nicke, the 920-megawatt (MW) Muara Tawar plant already has an adequate supply of fuel. "We've optimized the steam power plant, as it is cheaper."

June 30, 2015