Indonesia: Govt Denies Rumor It is Planning to Import Gas from Singapore
TEMPO.CO, Jakarta – The government has denied a rumor that it is planning to import liquefied natural gas (LNG) from Singapore. The Coordinating Minister for Maritime Affairs Luhut Pandjaitan said that the government is only negotiating a deal to build mini infrastructure that can transport LNG to small power plants.
“It’s not an import deal. And it [infrastructure deal] is still being negotiated,” Luhut said in his office on September 13. “If the study shows that it’s not profitable, it will be canceled.”
Minister Luhut elaborated that there are nine small power plants nominated to receive LNG distribution. Indonesia will supply gas to the infrastructure. “We’ll see. If in the next six month the fund is not yet received, it’ll be canceled. It’s still being studied,” he said.
He said that the government did not violate the law in the cooperation with Singapore firm Keppel Offshore and Marine, adding that a swap deal, not import, is being negotiated.
The study is being conducted to meet the demand for gas at a lower price, Luhut said. In addition, the government expects the deal will help state-owned electricity company PLN to cut electricity generation costs. “A head of agreement on the matter was signed last week in Singapore when Indonesia and Singapore celebrated the 50th year of bilateral relations between the two countries,” he said.