Indonesia and Japan join to generate electricity

Indonesia

JAKARTA, October 16, 2017 – Indonesia and Japan are mulling over the possibility of LNG-based power generation on ships. Sources indicated that as early as Monday, the two countries could enter into an agreement to begin developing the concept.

The novel approach would see vessels decked out with equipment such as power-generating turbines and LNG tanks. Indonesia would supply feedstock for the offshore plants via tankers from locally based storage depots.

Under the ambitious plans, a joint venture comprised of Japanese companies and Indonesia’s state power company would be established to sell electricity.

All told, the development is expected to cost between JPY 200 billion-300 billion (USD 1.79 billion-2.68 billion).

A net LNG importer, Japan’s expertise will serve the development well. As a whole, the project will be a counterbalance to China’s expanding influence in Southeast Asia and other parts of the world through developments such as the massive One Belt, One Road endeavour.

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