A consortium consisting of AG&P LNG, Suasana Benua Sukses, and KPM Oil and Gas, all operating within the energy sector, has secured a 20-year contract for the development of a liquefied natural gas (LNG) infrastructure project from PLN Energi Primer Indonesia (PLN EPI), an Indonesian state-owned enterprise focused on ensuring the supply of primary energy.
The consortium will establish a joint venture (JV) with PLN EPI, which will serve as both the customer and a co-shareholder of the facility. They will work together on designing, financing, constructing, owning, and operating LNG import terminal infrastructure and downstream logistics across seven sites in the Sulawesi-Maluku cluster of Indonesia. The infrastructure expansion will include an LNG carrier, a floating storage and regasification unit (FSRU), and multiple onshore regasification facilities. This initiative will provide LNG to power plants totaling a capacity of 1.51 gigawatts (GW).
The Sulawesi-Maluku LNG Cluster, with an overall regasification capacity of 2.3 million tons per year, is anticipated to start its commissioning in the first-half of 2026.
A study by Wood Mackenzie reveals that Indonesia’s gas demand is projected to surge by 77% by 2050 compared to 2023 levels, primarily driven by the power and industrial sectors. Shifts from coal to gas and the implementation of new gas-to-power initiatives will notably bolster the nation’s gas-powered electricity generation capabilities.
(Source: Offshore Technology & Wood Mackenzie)
