Keppel, Pavilion, PLN eye Indonesian LNG

Keppel Offshore & Marine has partnered with Pavilion Energy and PLN to look at small-scale LNG opportunities in western Indonesia, Keppel Corporation announced Thursday.

The heads of agreement covers potential distribution of LNG to remote islands through floating and onshore LNG terminals by small vessels. The fuel would be used to power PLN’s 25-100-MW power plants.

“Pavilion Energy has identified small-scale LNG supply and distribution as a key business area for the company and has built up its capabilities in small-scale LNG supply chain and engineering, to provide a reliable, efficient and cost-effective solution,” Pavilion CEO Seah Moon Ming was quoted as saying. “Small-scale LNG enhances Singapore’s role as a regional hub for LNG storage and reload, breakbulk and distribution.”

Indonesia’s oil and gas transport is dominated by maritime trade, as the country has few domestic pipelines and no international pipelines. However, Indonesia’s maritime and shipping industry is woefully underdeveloped for a nation that covers much of the world’s largest archipelago.