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Keppel O&M, Pavilion Gas tie up with PLN on small scale LNG in west Indonesia

KEPPEL Offshore and Marine Ltd (Keppel O&M) and Pavilion Gas are working with Indonesia's state-owned electricity provider PT Perusahaan Listrik Negara (PLN) to distribute liquefied natural gas (LNG) to remote islands and locations in west Indonesia.

Under this plan, the two Singapore companies will deliver LNG using small vessels to floating and onshore LNG terminals, where it will be regasified and used to generate electricity at PLN's power plants which range from 25 megawatts (MW) to 100 MW in capacity.

The three companies on Thursday signed a Heads of Agreement (HOA) at the Singapore-Indonesia Leaders' Retreat in Singapore.

Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas, said that the firm is pleased with the opportunity to collaborate with PLN and to enhance energy cooperation between Indonesia and Singapore.

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"Small-scale LNG enhances Singapore's role as a regional hub for LNG storage and reload, breakbulk and distribution," he said.