PLN holding partners with UAE company to develop natural gas infrastructure in Aceh
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Tempo.co - Holding PLN gandeng perusahaan asal UEA kembangkan infrastruktur gas
13 November 2024
Tempo.co, Jakarta – The holding company of PT Perusahaan Listrik Negara (PLN) (Persero), namely Energi Primer Indonesia (EPI), is partnering with a company from the United Arab Emirates (UAE), Mubadala Energy. This collaboration aims to utilise and develop natural gas infrastructure from the South Andaman Block, located off the north coast of Aceh Province.
The collaboration is based on the signing of a Memorandum of Understanding (MoU) between the holding company of PT PLN and Mubadala Energy on Tuesday, 5 November 2024, in Abu Dhabi, United Arab Emirates. President Director of PT PLN, Darmawan Prasodjo, stated that the collaboration is a manifestation of the company's commitment to promoting the use of natural gas in the electricity sector. "Indonesia has abundant natural gas resources, and this collaboration will foster the presence of alternative energy sources for power plants," said Darmawan in a written statement received by Tempo on Monday, 11 November 2024.
He mentioned that the collaborative effort aims to support the Indonesian government's energy transition programme to achieve zero emissions by 2060. According to Darmawan, natural gas is a vital energy source in driving the energy transition in the electricity sector.
Meanwhile, PT PLN has the potential to secure gas supplies as a low-emission energy source from this collaboration. Darmawan stated that both parties would promptly conduct a comprehensive study on the utilisation of gas found in the South Andaman Block, Aceh Province. "PLN is fully committed to developing greener energy to ensure a better future for coming generations. Climate change is a global issue, and collective collaboration is essential to address it," he said.
Meanwhile, Mubadala Energy Managing Director and CEO, Mansoor Mohamed Al Hamed, stated that the signing of the MoU was an important step. According to him, the interest lies in the sustainable energy development between PLN EPI and his company.
"We believe that through this collaboration, we can optimise the potential of the South Andaman Block and bring significant benefits to the company and the entire region," said Mansoor in the same statement.
Furthermore, PLN EPI President Director, Iwan Agung Firstantara, detailed the infrastructure development that his institution would undertake in collaboration with the company from the UAE. He explained that the natural gas to be explored comes from the Layaran and Tangkulo wells in the northern offshore region of Aceh Province. These two wells contain more than 8 trillion cubic feet (TCF) of gas.
He stated that PLN EPI and Mubadala Energy are committed to developing infrastructure to support the processing, transportation, and distribution of gas, leveraging these natural gas resources. Iwan continued, saying that this initiative could meet the growing demand for clean energy in Indonesia. "We hope that this study can produce a concrete roadmap for utilising natural gas as a clean energy solution that is not only environmentally friendly but also has a positive impact on the local economy and infrastructure of Indonesia," said Iwan.
Furthermore, Iwan mentioned that the collaboration also includes developing human resource capacity at PT PLN. This will be achieved through workshops and group discussions aimed at strengthening expertise in gas infrastructure management.
Iwan stated that with this cooperation, his company also aims to ensure the security of the national energy supply, including efforts to reduce carbon emissions. "This cooperation will also set parameters to review the infrastructure improvements needed to support gas processing, transportation, and local economic growth, thereby supporting Indonesia's energy security and energy transition goals," he said.
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