Page 10 - AsiaElec Week 41

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Malaysia receives first LNG cargo under TPA
MALAYSIA
MALAYSIA’S TNB Fuel Services (TNBF) has delivered its first shipment of liquefied natural gas (LNG) to parent company Tenaga Nasional (TNB), testing the country’s third-party access (TPA) rules in the process.
The Malaysian Gas Association (MGA) revealed on October 9 that the LNG cargo had arrived at the Sungai Udang terminal in Malacca City on October 7. The terminal is owned and operated by state-owned Petronas.
TNB said on October 2 that it had agreed to supply 3.5tn British thermal units (Btu) of gas to the Tuanku Jaafar thermal power plant (TPP) in Port Dickson and Bridge TPP in Klang operated by TNB and affiliate TNB Connaught respec- tively. The plants are anticipated to use the gas over a two-week period, with an average daily volume of 270,000 gigajoules (7.03mn cubic metres).
TNBF said the main objective of the cargo was to test TPA rules relating to state-run Pet- ronas Gas’ Sungai Udang terminal as well as its Peninsular Gas Utilisation (PGU) gas pipeline network. TNB noted that Petronas was the only company to have ever delivered LNG to the country’s power sector.
Malaysia’s gas market reforms aim to change this, however, with the government
implementing TPA in January 2017. The new rules not only allow third party suppliers to access the country’s gas infrastructure but also give industrial users the chance to buy LNG from any source.
“This pioneering transaction also serves as a knowledge-sharing platform for all parties to gain experience for capacity building, and to provide feedback to all parties involved, espe- cially Ministry of Energy, Science, Technology, Environment and Climate Change and the Energy Commission, on the robustness and governance of the TPA system,” TNB CEO Amir Hamzah Azizan said.
The MGA welcomed the arrival of the cargo, saying it was a testament to market reforms. It added: “Efforts must also be focused on increas- ing demand for gas within the country. Higher demand will create more opportunities for third parties to enter the market and spur investment to develop upstream indigenous gas that will fur- ther strengthen the long-term security of supply.”
TNBF secured its maiden LNG cargo from Shell Malaysia Trading under a master sales agreement signed on October 2. Azizan said the deal with Shell was a signal to other international gas suppliers that his company would be a regu- lar buyer.™
GAS-FIRED GENERATION
Pertamina-PLN agree to joint venture
Pertamina and PLN have agreed to form a joint venture in the electricity, gas and LNG and renewable energy-based electricity business, both at home and abroad. The agreement was carried out by their respective subsidiaries, namely PT Pertamina Power Indonesia (PPI) as a subsidiary of Pertamina and PT Indonesia Power (PI), a subsidiary of PLN.
PPI President Director, Ginanjar, said that the collaboration of the two SOE subsidiaries is the realisation of a dream to optimise Indonesia’s human capital while enhancing the expertise and capabilities of the nation’s children.
“As a national company, of course this
is our moral obligation to always accelerate the process of transformation of technology, knowledge and skills, as well as increase
NEWS IN BRIEF
expertise, and capabilities so that Indonesia can be independent. The electricity business is a technology that is certainly very self- managed by the nation’s children, “said Ginanjar, after the signing of the collaboration between the two companies, in Jakarta.
In addition to agreeing to form a joint venture in the electricity business, added Ginanjar, the two sides also agreed on cooperation in the field of operation & maintenance (O&M) as well as developing independent power producer (IPP) based on gas or LNG and new renewable energy.
Meanwhile, Managing Director of IP, Ahsin Sidqi, added that with his extensive experience and high flight hours in the field of O&M power plants, it would certainly provide reliable operational guarantees and added value in the form of competitiveness, for power projects which are currently being developed by PPI, and of course projects that will be jointly developed.
For IP itself, this is in addition to being
a place to introduce expertise that it already has, it is also a good opportunity to develop IP
expertise in power plant projects with a larger scale and the latest technology that continues to grow which will certainly become the pride of the nation.
PPI is currently carrying out the development of power plants, including the Java-1 1760MW gas and steam powered power plant which is under construction
and will start operating in 2021, Bangladesh 1200MW PLTGU which is under development, solar powered electricity generation (PLTS) Rhino 4MW, Sei Mangkei 2.4MW biogass power plant (PLTBG), as well as renewable energy and other creative energy power generation projects, including electric vehicles with several first class partners.
Ginanjar further said that the cooperation in managing projects through the synergy of the two SOE subsidiaries, not only provides benefits in the development of human capital and technology expertise, but also provides economic benefits created by the occurrence of Indonesian circulated capital flow, which in will ultimately have an economic multiplier effect.
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Week 41 15•October•2019