Page 17 - GLNG Week 02 2021

GLNG ASIA GLNG

Indonesia’s PGN unveils three-year gas plan

POLICY INDONESIA’S state-owned Perusahaan Gas PGN intends to take over handling the Balo-
Negara (PGN) has unveiled a three-year plan ngan refinery’s gas supply from Pertamina EP
to support the government’s drive to bolster and Pertamina Hulu Energi, which have been
domestic natural gas consumption. feeding the facility via a Pertamina Gas pipeline,
The government wants to reduce the coun- this year. In order to hit this target, PGN said it
try’s demand for oil by replacing it with gas where would finish building the SSWJ-WJA pipeline in
possible, or coal, in order to cut both the national the first half of this year.
fuel import bill as well as levels of pollution. Suprijanto added that the long-term needs of
PGN, a unit of state-owned Pertamina, said the Balikpapan refinery would be met through
on January 13 that it intended to complete a the development of Senipah-Balikpapan gas
range of pipeline projects in 2021-2023 that pipeline, while the Cilacap refinery would be fed
would help feed industrial, commercial and res- from PGN’s LNG portfolio.
idential customers. Suprijanto said: “PGN is preparing the con-
The list included the South Sumatra West struction of the Cilacap LNG receiving terminal,
Java (SSWJ) to West Java Area (WJA) integration which is targeted to start operating in the second
pipeline, which is slated for the first half of this half of 2022.”
year. Other projects include the development of In addition to tapping the company’s LNG
pipelines in North and Central Sumatra, Kalim- portfolio for downstream projects, PGN is also
antan and Central Java, as well as a Kendal-Se- working to help state-owned power utility PLN
marang-Demak pipeline. switch 52 diesel-fired thermal power plants
In the downstream, Pertamina senior spokes- (TPPs) over to LNG feedstock.
man Agus Suprijanto said PGN also intended to The Indonesian Energy Minister ordered the
supply all of Pertamina’s refineries in addition to two companies in January 2020 to work together
standalone petrochemical projects. on achieving the switchover by 2022.™

AUSTRAL ASIA

Squadron seeks foundation

buyers for LNG project

PROJECTS & AUSTRALIA’S Squadron Energy is striving to shortfall could emerge on the East Coast market
COMPANIES close talks with potential customers for its LNG as soon as 2023, Squadron remains confident
import project at Port Kembla in New South over the project’s future.
Wales. “In the absence of someone going and finding
Squadron CEO Stuart Johnston said on Janu- a massive gas field that we’ve missed for the past
ary 11 that he expected to finalise long-term gas 60 years down in Victoria, all the other sources
sales agreements (GSAs) with interested parties are either a long way away, expensive, a combi-
in the near future. nation of both ... or they will take a long time to
“Where we are at the moment is we are really develop,” Johnston said. “When you’re looking
working to finalise those customer agreements,” for security of supply, it will be a very good insur-
Johnston told local daily The Sydney Morning ance policy for Australia to have one of these ter-
Herald (SMH). “We are in advanced stages of minals built.”
discussions with several customers, and that’s The project is expected to supply more than
the next piece to fall.” 75% of NSW’s annual gas needs – around 100 PJ
Squadron is one of a number of developers (2.6bn cubic metres) – by the end of 2022. This
looking to establish import projects along the would put a sizeable dent in the 500mn cubic feet
south-east coastline using the floating storage (14.16 mcm) per day supply shortfall that AEMO
and regasification unit (FSRU) model. How- has warned could emerge in the near future.
ever, while Squadron has signed up power and Wood Mackenzie analyst Daniel Toleman
gas retailer EnergyAustralia as a customer, it has told the SMH that a final investment decision
struggled to win over other potential buyers. (FID) on the Port Kembla terminal was likely in
Reports emerged in November 2019 that the first quarter of this year. Squadron has said
the company had failed to finalise GSAs with previously that it expects to wrap up construc-
12 industrial consumers that had originally tion work within 16 months of FID, which would
revealed their interest in 2018. pave the way for first gas to flow in the second
But with the Australian Energy Market Oper- half of next year if the company’s current time-
ator (AEMO) warning last year that a gas supply line is met.™

Week 02 15•January•2021 www. NEWSBASE .com P17