Indonesia eyes LNG export to Cambodia

17 January, 2019 | Source: Antara News

Indonesia has eyed export of liquefied natural gas (LNG) to Cambodia to meet the demand for power plants in the country, Vice President Jusuf Kalla said here on Wednesday.

"I have talked about our economy. The Minister of Energy and Mineral Resources (Ignasius Jonan) and a team of PGN (the state gas firm PT Perusahaan Gas Negara) will continue the discussion in Phnom Penh and on how we can sell gas (to Cambodia)," Kalla stated.

According to Kalla, the high electricity tariff in Cambodia should be seen as an opportunity for Indonesia to offer natural gas as an alternative to diesel oil for power generator.

"Electricity here is very expensive, US$17 cent (per KwH), while our price is $7 cent. I have explained (to Premier Hun Sen) that our minister has already talked about it and it would be continued today," he added.

Meanwhile, Jonan remarked that private electricity company has controlled 90 percent of production in Cambodia and the remaining was managed by the government.

Power plants in Cambodia have used diesel oil, coal, and water for the generator, while the country has yet to have the infrastructure for gas-generated power plant.

"We offer to replace diesel oil with gas. PGN has made the offer. If they agree, PGN will invest here (in Cambodia)," Jonan noted.

A gas-generated power plant would need a facility of regasification to convert LNG into electricity. Therefore, Indonesia has also offered development of the regasification facility.

"It would need a facility to convert natural gas into liquid than return it to natural gas. Then, we may need to develop the piping infrastructure," Jonan added.

The LNG purchased from Indonesia is expected to produce 200 MegaWatt of electricity in Cambodia, or equal to the current production from its diesel oil power plant.

The production cost for diesel oil power plant could reach $20 cent per KwH, while gas power plant would only need half of it, Jonan added.

 

Indonesia`s economic growth reached a five-year high of 5.17 percent in 2018, mostly fueled by household consumption, investment, and government spending, according to the Central Statistics Agency (BPS).
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