Jera, PLN to develop LNG value chain in Indonesia

Japanese joint venture Jera on February 9 announced the signing of a memorandum of understanding (MoU) with Indonesia's state power company, PLN, to develop the LNG value chain in the southeast Asian nation.

Under the terms of the MoU, Jera will join forces with PLN Energi Primer Indonesia, a subsidiary of PLN specialising in fuel procurement and transportation. 

“Collaboration to establish a value chain for LNG, which plays an important role as an energy transition fuel, is expected to help Indonesia achieve both a stable supply of electricity and energy transition, as well as to contribute to achieving net zero emissions by 2060,” Jera said. 

The collaboration will focus on areas such as LNG procurement, optimisation processes, and the development and operation of LNG receiving terminals in Indonesia.

The partners intend to specifically tailor the LNG value chain to the power segment in Indonesia, acknowledging the crucial role LNG plays in meeting the country's growing energy demands.

In addition to the LNG initiatives, the collaboration will explore the feasibility of transitioning towards a hydrogen and ammonia value chain.

In December last year, Jera signed an MoU with another state-owned Indonesian company, Pertamina, to develop LNG and hydrogen/ammonia value chains. 

Indonesia has set a goal of achieving net-zero emissions by 2060.